UPDATE: ISI Group Upgrades The Ryland Group to Strong Buy, Names $48 PT on Multiple Positive Factors

In a report published Friday, ISI Group analyst Stephen East upgraded the rating on

from Neutral to Strong Buy, and and named a $48.00 price target. In the report, ISI Group noted, “We are upgrading RYL to Strong Buy with a price target of $48. The execution this management team has put together over the past three years is nothing short of remarkable. Since taking charge, this team fixed a company that was heading in the wrong direction with rapidly shrinking community count and margins. The recent pounding this group has taken from interest rate fears combined with stellar execution and exceptional earnings power over the next few years, has provided us the opportunity to turn more positive on the name. The shares currently trade at only at 8.2X our fully taxed 2014 EPS estimate. Our $48 PT implies only 11.3X this year's EPS and 6.4X our 2015 normalized margin EPS estimate.” The Ryland Group closed on Thursday at $37.73.