UPDATE: Credit Suisse Initiates Coverage on The New Home Company on EPS Growth Expectations

In a report published Tuesday, Credit Suisse analyst Daniel Oppenheim initiated coverage on

with an Outperform rating and $16.00 price target. In the report, Credit Suisse noted, “Our Outperform rating is driven by our expectation for EPS growth from $0.35 in 2014 to $3.27 in 2016, coupled with its discounted valuation at just 1.15 times our 2015 estimated book value. We believe NWHM's existing California land positions (1,033 lots owned or controlled) will supply the company with land for home closings through 2016, and its key land relationships in core markets will likely lead to additional opportunities. NWHM's senior management has among the top track records in the homebuilding industry, having grown John Laing Homes during the last cycle, slowing land purchases as the market became overheated, and selling John Laing homes at the peak of the market in 2006.” The New Home Company closed on Monday at $12.65.