UPDATE: Deutsche Bank Initiates Coverage on Taylor Morrison With a Hold Rating

In a report published Tuesday, Deutsche Bank analyst Nishu Sood initiated coverage on Taylor Morrison TMHC with a Hold rating and a $26 price target. 

In the report, Deutsche Bank stated, "We project Taylor Morrison to have amongst the highest community count growth in the builder group the next few years, which should also propel strong book value accretion. We agree with investors on the impressiveness of this growth, but we disagree on the inherent value of having a longer land supply. In our view, a longer land supply won't necessarily lead to a superior margin trend. Since investors have incorporated a valuation premium for both growth and a longer land profile, we think Canadian risk is being downplayed; accordingly we initiate coverage of Taylor Morrison with a Hold rating."

Taylor Morrison closed on Monday at $26.33.