UPDATE: Deutsche Bank Initiates Coverage on LGI Homes on Compelling Financial Results
In a report published Monday, Deutsche Bank analyst Nishu Sood initiated coverage on LGI Homes (NASDAQ: LGIH) with a Buy rating and $18.00 price target.
In the report, Deutsche Bank noted, “Drawing the differences between most public homebuilders typically ends up highlighting how similar they are; by contrast, LGI's unique sales-focused model is clearly driven by an entrepreneurial vision for how a builder can be more effective in selling its product. After 10 years of executing this vision, the financial results are compelling. Controlling your own demand flow results in high yet stable margins, consistently strong sales pace and well above average returns. We model LGI as a franchise expansion story rather than a housing recovery story; even with conservative modeling we initiate at a Buy rating.”
LGI Homes closed on Friday at $15.40.
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