UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on The Ryland Group

In a report published Friday, Deutsche Bank reiterated its Buy rating on The Ryland Group

, and slightly raised its price target from $37.00 to $38.00. Deutsche Bank noted, “We expect housing recovery to continue in 2013, but when we use our ‘what's priced in' model to compare investors' expectations for housing recovery against our own we find a noticeable gap. After builder stocks' run in 2012, housing needs to deliver impressive volume and pricing growth the next few years for builders to grow into their valuations. On the other hand, we see a constrained mortgage environment and muddle-through payroll growth as likely to deliver a more moderate growth trajectory. Overall, this argues investors should be looking more for relative value in the builders in 2013.” The Ryland Group closed on Thursday at $38.00.