UPDATE: JP Morgan Downgrades Beazer Homes to Neutral on Relative Order Growth

JP Morgan downgraded Beazer Homes USA, Inc. BZH from Overweight to Neutral and raises the price target from $18.00 to $20.00. JP Morgan commented, "[W]hile we expect fundamental improvement in FY13, EPS should remain solidly negative, while additionally, we believe the slightly negative order growth we estimate in FY13 of (3%) versus our universe average estimate of 19% should result in investor disappointment, despite guidance already effectively pointing to such a potential outcome. Lastly, while inexpensive on an adjusted P/B basis (ex-FAS 109), trading at 0.87x, we believe that this not only appropriately reflects our outlook for negative EPS and hence book value to decline in FY13, but also we point out that BZH trades roughly in-line with its peers on a P/E basis against our 2016 Earnings Power and would trade at a premium if the company issued equity." Beazer Homes closed at $ on Thursday.