UPDATE: J.P. Morgan Raises Meritage Homes' PT

According to a research report published this morning, J.P. Morgan has increased Meritage Homes'

PT from $24 to $28. In the report, J.P. Morgan said, "Following its 1Q conference call, we provide the following three key takeaways (as well as pre-call bullets in the body of this note). First, April orders have improved “significantly”, following strong acceleration in YOY growth during 1Q, albeit below March's rate; additionally, modest price increases have been achieved in two-thirds of MTH's communities. Second, gross margins are expected to improve modestly over the next several quarters, driven by pricing and cost improvements. Lastly, on a regional basis, Phoenix and Northern CA have been very strong, while TX has been “spotty”." J.P. Morgan maintains its Neutral rating on Meritage Homes, which is currently trading at $28.56.