Brokerage upgrades Lennar, maintains outperform ratings on other
By Andrea Riquier | Marketwatch
As low mortgage rates bolster demand and the economy remains supportive, homebuilder stocks are now the preferred proxy for housing market demand for analysts at Wedbush, according to a note published Thursday.
The Wedbush team upgraded Lennar LEN, -1.85% LEN.B, -1.86% to outperform on the same day, and maintained an outperform rating on Taylor Morrison Home Corporation TMHC, -0.54% , Beazer Homes USA Inc. BZH, +0.61% , and Century Communities, Inc. CCS, -0.37%
That’s a shift from a prior call, in which lumber distributors were their preferred way of playing housing, but with lumber price volatility spiking and housing fundamentals looking healthier, “investors should be willing to pay a higher multiple for homebuilder earnings,” the analysts wrote.
