The homebuilder was upgraded to an outperform rating from neutral by Credit Suisse analysts on Friday.
"We now expect orders for our coverage universe to increase 18% in 2012 and 19% in 2013, up from 11% and 15%, respectively," Credit Suisse analysts wrote in a report Friday. "Should the stronger traffic trends continue, we see potential for further upside to volume, as sales per community are approximately 33% below average historical levels (including the depressed recent years in that average)."Shares of D.R. Horton hit a 52-week high on Friday of $15.46. The stock's 52-week low of $8.03 was set on Oct. 4. D.R. Horton has an estimated price-to-earnings ratio for next year of 19.08 times; the average for home construction companies is 23.32. For comparison, PulteGroup (PHM) has a lower forward P/E of 17.67; Lennar's (LEN) forward P/E is 19.89. Fourteen of the 22 analysts who cover D.R. Horton rated it hold. Six analysts gave the stock a buy rating and two rated it sell. TheStreet Ratings gives D.R. Horton a B- grade with a buy rating and a $17.33 price target. The stock has risen 22.76% year to date.
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