NEW YORK (TheStreet) -- Shares of CalAtlantic Group (CAA) are up by 1.41% to $40.32 in late-afternoon trading on Monday, as MKM Partners upgraded the stock to "buy" from "neutral" this morning. The firm has a $47 price target on CalAtlantic stock. 

The Irvine, CA-based home-building and financial services company is a diversified builder of single-family attached and detached homes.

"With mortgage rates recently closing in on all-time lows and recent more positive jobs data, we believe that now is a good opportunity to pick up a solid builder operating in solid markets for an attractive valuation," MKM wrote in an analyst note. 

CalAtlantic, the product of the October 2015 merger between The Ryland Group (RYL) and Standard Pacific Corp. (SPF), "has made it through the first two quarters of acquisition integration without any large negative surprises," the firm noted. 

Additionally, housing market stability has "further reduced integration risk," MKM said.  

"We also like the company's geographic exposure and find its valuation compelling," the firm concluded.  

TheStreet Recommends

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CALATLANTIC GROUP INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

Image placeholder title

CAA

data by

YCharts