Skip to main content

Market Overview

UBS Sees Price Target For Beazer Homes Somewhere In The Neighborhood Of $10


Beazer Homes USA, Inc.’s (NYSE: BZH) F3Q indicated that the company was making progress towards its long-term goals of boosting top-line and generating margin expansion, along with deleveraging, UBS’s Susan Maklari said in a report. She maintained a Neutral rating on the company, while raising the price target from $8 to $10.

Analyst Susan Maklari mentioned that Beazer's F3Q results reflected:

  • A modest increase in community count, along with benefits of easier comps
  • Operational improvements and Beazer's “three-pronged strategy around product and mortgage financing” would likely enable the company to generate greater profitability, including gross margins back to more than 21 percent
  • Improving demand, combined with a gradual rise in optioned lots, would help effective cash management, as the company “looks to balance growth with its targeted debt paydown” of $150mn in F2016 and +$250mn through F2018.

Maklari raised the EPS estimates for F2016 and F2017 from $0.75 to $0.90 and from $1.00 to $1.10, respectively.

Why The Neutral Rating?

The analyst expressed optimism in Beazer being able to drive improved results over the next few years, “as the current recovery in housing further unfolds.” She explained that the strategy was based on achieving volume growth and lowering costs, while “driving operating efficiencies and aggressively deleveraging its balance sheet.”

Maklari added, however, that the broader housing recovery was moderate in nature and Beazer's decision to focus on improved cash generation would likely keep the stock valuation below that of “better capitalized peers.”

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for BZH

Apr 2020WedbushMaintainsNeutral
Jan 2020WedbushDowngradesOutperformNeutral
Sep 2018Credit SuisseMaintainsNeutralNeutral

View More Analyst Ratings for BZH
View the Latest Analyst Ratings


Related Articles (BZH)

View Comments and Join the Discussion!

Posted-In: Susan Maklari UBSAnalyst Color Price Target Reiteration Analyst Ratings

Latest Ratings

PHIOHC Wainwright & Co.Maintains6.0
NOVNHC Wainwright & Co.Maintains28.0
SQSPKeybancInitiates Coverage On70.0
PCORKeybancInitiates Coverage On105.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at