CCS (43.00) JPMorgan upgrades and increases price target from 44.50 to 64.00 -
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JPMorgan analyst Michael Rehaut upgraded Century Communities to Overweight from Neutral with a price target of $64, up from $44.50. Despite the sector being up 38% year-to-date led by an "impressive" rebound in demand following the early days of the pandemic, homebuilders have a "solid amount of additional upside potential left in the tank over the next 15 months," Rehaut tells investors in a research note. Single-family housing starts are currently only approaching their long-term average after an "unprecedented" 13 years of being below 1.0M, the analyst points out. He expects "solid growth" over the next two years to be driven by low interest rates, a recovering job market, improving consumer confidence, tight supply and solid household formation.
