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UPDATE: J.P. Morgan Upgrades Beazer Homes USA to Overweight on Highly Attractive Valuation

Related BZH
Upcoming Earnings In The Housing Sector
UBS Sees Price Target For Beazer Homes Somewhere In The Neighborhood Of $10

In a report published Friday, J.P. Morgan analyst Michael Rehaut upgraded the rating on Beazer Homes USA (NYSE: BZH) from Neutral to Overweight, and raised the price target from $21.00 to $25.50.

In the report, Rehaut noted, “BZH currently trades at 0.8x adj. P/B (ex-adj. FAS 109) vs. the group's 2.1x average, as well as 4.8x our updated 2016 Earnings Power (and a still attractive 6.0x assuming 25% dilution in an equity issuance scenario) vs. the group's 8.3x average. As a result, we view BZH's valuation as highly attractive, and we believe the company's likely turn to profitability in FY14 represents a solid positive fundamental catalyst for the stock over the next 6-12 months, as this should create additional visibility for a material improvement in EPS over the next 2-3 years.”

Beazer Homes USA closed on Thursday at $18.52.

Latest Ratings for BZH

Jul 2016UBSMaintainsNeutral
May 2016UBSDowngradesBuyNeutral
Feb 2016UBSMaintainsBuy

View More Analyst Ratings for BZH
View the Latest Analyst Ratings

Posted-In: J.P. MorganAnalyst Color Upgrades Analyst Ratings


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