Analyst Jay McCanless clarified that at current levels, the shares fairly reflect the product catalyst that was behind his June 15 upgrade of the stock, as well as the catalysts of looser credit standards.
With the company's fiscal year ending Sept. 30 and the company's practice of releasing fiscal fourth-quarter and full-year results around mid-November, Wedbush expressed concern about a lack of near-term catalyst.
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However, the firm said its long-term thesis concerning Beazer Homes has not changed, as the company remains committed to reducing debt and lowering the mothballed assets where prudent. The firm expects the active adult Gatherings concept as a potential earnings catalyst for 2019.
"Assuming BZH's community count expands through the coming year, we view our FY18 EPS and revenue estimates as achievable," the firm said.
As such, Wedbush downgraded shares of Beazer Homes from Outperform to Neutral, with a 12-month price target of $15.
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