Seeking Alpha

The strong performance of the housing market in 2013 resulted in solid gains for most residential construction companies and Beazer Homes (BZH) is a good example of that. Shares of BZH rose 40% in the last year, propelled by double digit revenue growth and expanding margins. Moving forward, we have a bearish outlook on BZH for 2014. In our opinion, BZH relies heavily for its future success on rising home prices as opposed to rising new orders to improve their margins and bottom line. BZH has an expansion plan in place for the near term that we believe is too optimistic and requires an unsustainable growth rate. We have an $18 price target for the company for the...

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