The View

October 14, 2010 by Post Team 

The View, DR Horton (DHI) and Pulte Group (MHP) are both lower today after an upgrade by UBS Securitiesanlyst David Goldberg, who raised both stocks to “neutral” from “sell”, saying that ‘They have become cheap enough that there is little drop here.

There are positive developments for residential construction throughout, writes Goldberg; first and foremost that manufacturers have maintained a certain discipline to the extent not cut prices as much as in the past. This, combined with the fact that seizures are “increasingly concentrated” in certain communities and not others, that means the book value of manufacturers is unlikely to fall significantly from here.

Trades HID least one book once, just above the group 0.9 times the average rating. Goldberg thinks he can get 1.1 times the housing market stabilizes towards the end of this year, and he assigns the stock a price target to 11.

PHM is even cheaper, at 0.8 times. Goldberg affects the stock 0.9 to the book repeatedly, for a target price to 8.50.

From IHD is currently down 16 cents, or 1.5%, to 10.62 and. PHM hand are out 10 cents, or 1%, and 8.08.

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