Beazer Homes upgraded to Outperform from Neutral at Wedbush
Wedbush analyst Jay McCanless upgraded Beazer Homes to Outperform from Neutral with a price target of $32, up from $20. The analyst believes the rebound in new housing demand thus far in 2023 has been driven by a lack of existing home competition in most markets and by tools like mortgage rate and closing cost incentives that help buyers solve for the payment they need. Book values for the public homebuilders "are more secure now" versus the second half of 2022 when the market expected write-downs and GAAP losses to erode book values for all builders, the analyst tells investors in a research note. As a result, the firm anticipates Beazer's fiscal 2024 price-to-tangible book values should move closer to 0.9-times versus the current 0.7-times multiple. The stock's book value discount is unwarranted, contends Wedbush.
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