Share on StockTwits
 

Equities research analysts at Bank of America Corp. assumed coverage on shares of LGI Homes (NASDAQ:LGIH) in a research note issued to investors on Monday, AnalystRatingsNetwork reports. The firm set a “buy” rating and a $19.00 price target on the stock. Bank of America Corp.’s target price would indicate a potential upside of 23.38% from the stock’s previous close.

The analysts wrote, “We initiate coverage of LGI Homes with a Buy rating and $19 price objective, which implies a 23% total return. With forecast revenues of around $225mn in 2013, LGI originally started out as a Texas homebuilder, but has subsequently expanded operations into Arizona, Georgia and Florida. The company IPO’d on November 13, selling 10.35mn shares to investors at $11/share. LGI prides itself on a sales and marketing culture that is customer focused. As a result, the company has been able to consistently demonstrate strong order growth and industry-leading margins as renters buy into LGI’s home ownership value proposition. Meantime LGI’s “land agnostic” approach (no preference for being long land or land light) affords it a competitive advantage, as LGI tends to go further out from prime locations where other builders tend to compete given its targeted client base (price sensitive so they’re willing to travel a little more to a city center) and as long as project returns are attractive.”

LGI Homes (NASDAQ:LGIH) traded down 4.74% during mid-day trading on Monday, hitting $14.67. The stock had a trading volume of 57,698 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 $284.8 million and a price-to-earnings ratio of 22.00.

Several other analysts have also recently commented on the stock. Analysts at JMP Securities initiated coverage on shares of LGI Homes in a research note to investors on Monday. They set an “outperform” rating and a $18.00 price target on the stock. Separately, analysts at JPMorgan Chase & Co. initiated coverage on shares of LGI Homes in a research note to investors on Monday. They set an “overweight” rating on the stock. Finally, 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.