Calatlantic Group Receives a Buy from MKM Partners

By Austin Angelo

MKM Partners analyst Megan McGrath reiterated a Buy rating on Calatlantic Group (NYSE: CAA) today and set a price target of $45. The company’s shares opened today at $33.57.

McGrath commented:

“We maintain our Buy rating on CAA and $45 price target. We like the company’s geographic exposure and focus on expanding its entry level buyer exposure, but at a mid-level price point. Despite its gross margin impact, we think CAA’s focus on re-accelerating growth is the right one, as it should improve returns in floundering communities.”

According to TipRanks.com, McGrath is a 2-star analyst with an average return of 0.6% and a 48.1% success rate. McGrath covers the Industrial Goods sector, focusing on stocks such as Hovnanian Enterprises Inc, Owens Corning, and Toll Brothers.

Currently, the analyst consensus on Calatlantic Group is Moderate Buy and the average price target is $40.67, representing a 21.1% upside.

In a report issued on November 14, Evercore ISI also initiated coverage with a Buy rating on the stock with a $43 price target.

Calatlantic Group’s market cap is currently $3.96B and has a P/E ratio of 11.72. The company has a book value ratio of 0.9582.

CalAtlantic Group, Inc. operates as a homebuilder. The company offers home building, construction planning, and designing services. It operates in two business segments: HomeBuilding and Financial Services. CalAtlantic Group was founded in 1965 and is headquartered in Irvine, CA.