Wedbush Securities Inc. analyst cut hisinvestment opinion of BeazerHomes USA Inc. to "neutral" from "outperform,"with a price target of $15.
The analyst wrote in a research report: "We aredowngrading shares of BZH. The company's stock price has exceeded our pricetarget, and we do not see a near-term catalyst for increasing the target. Atcurrent levels, BZH trades at a FY17E/ FY18E P/E ratio of 30.3x/16.2x versusthe group average of 14.4x/10.5x." The analyst added: "BZH remainscommitted to reducing debt and lowering the mothballed assets where prudent.The active adult Gatherings concept should be an earnings catalyst for FY19,and assuming BZH's community count expands through the coming year, we view ourFY18 EPS and revenue estimates as achievable."