Forestar (FOR) Well Positioned For Gradual Recovery In Real Estate
Analysts at Soleil Securities Group maintain their "buy" rating on Forestar Group (NYSE: FOR), while raising their estimates for the company. The target price for FOR is set to $26.
According to Soleil Securities Group, “Forestar is well positioned for the gradual recovery in real estate, with a heavy weighting of developed lots to more favorable markets such as Texas. FOR should benefit from favorable demand from builders for "A" location finished lots where builders' inventory is increasingly becoming limited. We also anticipate FOR will place increasing emphasis on multifamily opportunities in this cycle.”
Soleil Securities Group “continues to believe significant value creation opportunities could exist from FOR's mineral resources if the boundaries of the Haynesville Shale get extended to the south and west as is currently the trend.” “We expect FOR to see an increase in drilling activity as a result of recent favorable nearby results,” the analysts add.
Soleil Securities Group has reduced its EPS estimate for 2010 from $0.40 to $0.70.
