B.Riley FBR Keeps a Buy Rating on Legacy Housing Corp (LEGH)

By Carrie Williams

In a report released today, Alex Rygiel from B.Riley FBR reiterated a Buy rating on Legacy Housing Corp (LEGHResearch Report), with a price target of $16. The company’s shares closed last Monday at $12.95.

Rygiel noted:

“Last night, 8/13, after the close, Legacy Housing Corp. (LEGH) announced 2Q19 results that were strong with net sales, EBIT, and EPS all ahead of our expectations. This is a nice upside given the previously noted difficult weather in the spring across many of LEGH’s core south central markets. Also, the positive Y/Y sales growth and sequential improvement highlight management’s strong efforts in 2Q to move inventory, which declined $4.4M sequentially. LEGH’s focus on manufactured housing parks (MHP) and land purchases for MHP communities should begin to generate out-sized growth and margins for the company late this year and 2021 and beyond. We reiterate our Buy rating and our conservative $16 price target.”

According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 5.7% and a 56.2% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Legacy Housing Corp with a $16 average price target.

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Based on Legacy Housing Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $7.21 million. In comparison, last year the company had a net profit of $9.61 million.

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Legacy Housing Corp. engages in the selling, building, and financing manufactured homes and tiny houses that are distributed through a network of independent retailers and company-owned stores and are sold directly to manufactured home communities.