UPDATE: Compass Point Reiterates On D.R. Horton On Positive 2015 Outlook

In a report published Wednesday, Compass Point analyst Wilkes Graham reiterated a Buy rating on

, and raised the price target from $26.00 to $28.00. In the report, Compass Point noted, “We reiterate our Buy rating and are raising our price target to $28.00 from $26.00 on shares of DHI. DHI reported mixed 4Q14 earnings results characterized by a headline miss, a margin miss, 38% orders growth, and 26% organic orders growth (compared to the sector average of 2%). While the Company is the clear leader for volume growth next year (as Management is guiding towards 20%-30% 2015 closings growth), additional upside to our PT is possible if margins can expand from the 20% level. To that end, we believe that DHI is best positioned to take advantage if mortgage credit expands to the lower end of the market- which should ultimately lead to better margins as the Company will be able to reduce incentives as volumes continue to pick-up. We continue to favor DHI heading into the seasonal Hope Trade (November 21 to February 6) and we view the sector's positive reaction to the Company's margin and EPS as validation that the Hope Trade is on and investors are focusing on next year's potential.” D.R. Horton closed on Tuesday at $23.95.