UPDATE: D.A. Davidson Upgrades Universal Forest Products to Buy, Reiterates $46 PT on Overblown Housing Recovery Concerns

In a report published Thursday, D.A. Davidson analyst Steven Chercover upgraded the rating on

from Neutral to Buy, and reiterated the $46.00 price target. In the report, D.A. Davidson noted, “Concerns about housing recovery [are] overblown. We attribute the recent weakness in UPFI shares to concerns that the housing recovery is not as robust as anticipated and/or that rising interest rates will crimp the rebound. We believe those fears are overblown, particularly in the case of UFPI, whose exposure to residential construction is less than 20% of total revenues. With UPFI shares now 24% below our $46 target, we believe the valuation is attractive and we are raising our rating from Neutral to BUY.” Universal Forest Products closed on Wednesday at $37.01.