TOL - Analyst Upgrades Homebuilders In Anticipation Of A Credit Catalyst Amid Recession Fears | Benzinga
Seaport analyst Kenneth Zener has upgraded the shares of KB Home (NYSE: KBH), M.D.C. Holdings, Inc. (NYSE: MDC), Meritage Homes Corporation (NYSE: MTH), Taylor Morrison Home Corporation (NYSE: TMHC) and Toll Brothers, Inc. (NYSE: TOL) to Buy from Neutral rating.
The analyst looks at 25% upside for all the above homebuilders. The analyst has listed the conclusions after looking at 10 past rate inversion periods since 1957, and applying past stock performance.
The conclusions are: 9 of 10 cycles led to a recession, sector out-performance versus S&P and housing activity inflects 2-months post de-inversion.
The analyst says buying builders ...