Beazer Homes (NYSE:BZH) was raised to Outperform from Neutral with a new price target of $32, up from $20 per share at Wedbush on Wednesday.
The firm's analysts told investors in their note that they feel the company's book value discount is unwarranted.
"We believe the rebound in new housing demand thus far in 2023 has been driven by a lack of existing home competition in most markets and by tools like mortgage rate and closing cost incentives that help buyers solve for the payment they need," they wrote.
"As a result, we believe book values for the public homebuilders are more secure now versus C2H22 when the market expected writedowns and GAAP losses to erode book values for all builders."
Wedbush now believes Beazer's FY24 price/tangible book value (TBV) multiple should move closer to 0.9x versus the current 0.7x multiple.