JPMorgan Chase & Co. started coverage on shares of LGI Homes (NASDAQ:LGIH) in a research report sent to investors on Monday morning, TheFlyOnTheWall.com reports. The firm issued an overweight rating on the stock.
“We initiate coverage of LGI Homes with an Overweight rating and a Dec. 2014 price target of $19.00. Focused primarily on the entry-level first-time buyer, LGIH employs a unique and successful operating model, in our view, including a differentiated marketing and sales approach aimed at converting renters to homeowners, generally acquiring land further out within a metro area and building 100% on spec. We believe strong visibility exists for our order growth outlook over the next two years, based on the company’s land position, land acquisition strategy and emerging, successful track record of entering new markets. Additionally, its strong gross margins are sustainable, in our view. Lastly, we believe LGIH’s valuation is attractive, trading at only 5.0x our 2016 Earnings Power vs. our universe average of 6.2x, and note that our price target represents 23% upside potential, above our universe average of 19%. Hence we rate the stock Overweight relative to its peers amid our positive sector stance.,” JPMorgan Chase & Co.’s analyst commented.
JPMorgan Chase & Co. has also taken action a number of other stocks recently. The firm downgraded shares of Canon from an overweight rating to an underweight rating. Also, JPMorgan Chase & Co. reiterated its overweight rating on shares of Rio Tinto.
LGI Homes (NASDAQ:LGIH) traded up 1.84% during mid-day trading on Monday, hitting $15.46. The stock had a trading volume of 55,683 shares. LGI Homes has a one year low of $12.01 and a one year high of $16.03. The stock’s 50-day moving average is $13.77 and its 200-day moving average is $13.77. The company has a market cap of $300.1 million and a P/E ratio of 21.69.
Separately, analysts at Deutsche Bank initiated coverage on shares of LGI Homes in a research note to investors on Monday. They set a buy rating and a $18.00 price target on the stock.
LGI Homes, Inc is a homebuilding company engaged in the design and construction of entry-level homes in markets in Texas, Arizona, Florida and Georgia.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.