UBS Starts Coverage of Homebuilders (BZH, CTX, DHI, HOV, KBH, MTH, PHM, RYL, SPF, LEN, LOW)

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By Douglas A. McIntyre Published
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Lennar posted earnings and as expected these were just ugly.  The loss was $3.25 per share after charges, although this includes charges of $3.33 per share.  Revenues were $2.34 Billion.   Lennar’s home sale revenue fell 44% to $2.2 billion. Cancellation rate was 32%; New orders fell 48% to 5,804 homes.  And if this wasn’t foreseeable, the company will be having more job cuts in the coming quarter.  Lennar shares are indicated down $1.30 to 41.70 at what will be another set of 52-week lows.

UBS has initiated coverage of homebuilders:

  • Beazer (BZH) started as Sell;
  • Centex (CTX) started as Buy;
  • D.R.Horton (DHI) started as Sell;
  • Hovnanian (HOV) started as Neutral;
  • KB Home (KBH) started as Buy;
  • Lennar started as Sell;
  • Meritage (MTH) started as Neutral;
  • Pulte (PHM) started as Sell;
  • Ryland (RYL) started as Neutral;
  • Standard Pacific (SPF) started as Sell.

Lowe’s (LOW) earnings warning last night is also pulling the related and tertiary sector down.

Jon C. Ogg
September 25, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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