Analyst Upgrades Homebuilders In Anticipation Of A Credit Catalyst Amid Recession Fears
Portfolio Pulse from Shivani Kumaresan
Seaport analyst Kenneth Zener has upgraded the shares of KB Home, M.D.C. Holdings, Meritage Homes Corporation, Taylor Morrison Home Corporation, and Toll Brothers to Buy from Neutral rating. The analyst sees a 25% upside for these homebuilders, based on the analysis of past rate inversion periods since 1957. The analyst suggests that buying builders at 1x book and selling at 2x is a viable strategy, and that these builders traditionally outperform the market amid rising economic headwinds.
November 02, 2023 | 7:27 pm
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POSITIVE IMPACT
KB Home has been upgraded to Buy from Neutral by Seaport analyst, with a potential 25% upside.
The upgrade by the analyst based on historical data and the potential 25% upside could lead to increased investor interest and a potential rise in the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
M.D.C. Holdings has been upgraded to Buy from Neutral by Seaport analyst, with a potential 25% upside.
The upgrade by the analyst based on historical data and the potential 25% upside could lead to increased investor interest and a potential rise in the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Meritage Homes Corporation has been upgraded to Buy from Neutral by Seaport analyst, with a potential 25% upside.
The upgrade by the analyst based on historical data and the potential 25% upside could lead to increased investor interest and a potential rise in the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Taylor Morrison Home Corporation has been upgraded to Buy from Neutral by Seaport analyst, with a potential 25% upside.
The upgrade by the analyst based on historical data and the potential 25% upside could lead to increased investor interest and a potential rise in the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Toll Brothers has been upgraded to Buy from Neutral by Seaport analyst, with a potential 25% upside.
The upgrade by the analyst based on historical data and the potential 25% upside could lead to increased investor interest and a potential rise in the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100