UPDATE: Compass Point Upgrades Beazer Homes USA to Neutral, Raises PT Following 2Q13 Earnings Results

In a report published Friday, Compass Point analyst Wilkes Graham upgraded the rating on Beazer Homes USA

from Sell to Neutral, and raised the price target from $15.00 to $19.50. In the report, Graham noted, “While 2Q13 earnings results were generally in line with expectations, guidance towards a profitable second half of 2013 and full year 2014 on the earnings call was both surprising and encouraging. While we applaud management's fairly specific estimate ranges for various key operating metrics, we can't quite see profitability in 2014, but nevertheless we do believe the company is set to turn the corner in the coming quarters. Ultimately, we see further upside in our price target if the company can cut interest expense at a quicker or more drastic rate than we're already modeling, or if the company can produce materially more EBITDA than our estimates.” Beazer Homes USA closed on Thursday at $18.52.