UPDATE: KBW Downgrades DR Horton to Market Perform Following Q1 Earnings Report
In a research note Wednesday morning, Keefe, Bruyette & Woods downgraded DR Horton Inc. (NYSE: DHI) from Outperform to Market Perform. Despite the ratings downgrade, the firm's Ryan Tomasello raised his price target from $23 to $25.
The note follows DR Horton's Q1 results Tuesday morning before the market opened.
The KBW analyst pointed to several metrics he thought were favorable during DR Horton's quarter, including a moderating cancellation rate, optimism about the upcoming selling season in the Spring and a positive trajectory for future closing prices.
Tomasello called DR Horton shares fairly valued trading at about 1.8x current book value and 1.6x forward book value.
The analyst boosted forward looking EPS estimates for 2014 and 2015 from $1.55 and $1.98 to $1.63 and $2.12, respectively.
Following the research note D.R. Horton, Inc. shares are trading up about 0.2 percent. The stock surged nearly 10 percent on Tuesday following the quarterly figures.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.