UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on The Ryland Group

In a report published Monday, Citigroup reiterated its Neutral rating on The Ryland Group RYL, and raised its price target from $22.00 to $42.00. Citigroup noted, “Channel checks continue to indicate that good lots at reasonable prices are becoming scarcer, and input costs are recovering upwardly on improved supply chain capacity utilization and a short supply of skilled labor. Therefore, we look forward to management's commentary on these potential issues and expected (related) trends in RYL's gross margins, backlog conversion rates, and rising active community count and absorptions. For 2013, we project gross margin (incl. interest) to expand 130bp YoY to 20.7%, backlog conversions of ~56% per quarter, and active communities up 10% YoY at 2013-end.” The Ryland Group closed on Friday at $40.96.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorPrice TargetAnalyst RatingsCitigroup
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!