Raymond James downgrades two homebuilders


Standard Pacific (SPF -0.8%) loses its Buy rating, now a Hold, and KB Home (KBH +0.5%) is cut to Sell from Hold. Both stocks have moved neck and neck this year - ahead 4.6% YTD after major pullbacks since the Treasury market blew up in May.

RayJay also makes a couple of moves in the apartment REIT space, upping Equity Residential (EQR +0.1%) to a Buy while removing its Buy rating on Essex Property Trust (ESS -0.2%). It could be a valuation call after ESS has outperformed EQR by more than 1,000 basis points over the last year.

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  • convoluted
    , contributor
    Comments (2443) | Send Message
     
    What foresight! I'm on record as shorting homebuilders months ago-when all the little bulls were reeling from an excess of free testosterone. Now, you might look at 20.45 on ITB to sell puts-how absurdly moronic. The optimal strategy would be to simply stay away from that sector. Look at PSA common/preferred for arbitrage yield plays-especially for income yield-if you have a desire for real estate exposure.
    17 Oct 2013, 10:53 AM Reply Like
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