NEW YORK (TheStreet) -- Shares of D.R. Horton, Inc. (DHI) are higher in pre-market trading by 1.19% to $21.34 Thursday after the homebuilding company was upgraded to "buy" from "neutral" at UBS (UBS) , with an increased price target to $26 from $20.
Analysts at the firm cited relative valuation and said investor concerns about deteriorating performance is an overreaction.
UBS also said D.R. Horton is well positioned for 2015 given its decision to accelerate construction, reduce costs, and focus on the return of the entry level buyer and potential higher rates.
Separately, TheStreet Ratings team rates D R HORTON INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate D R HORTON INC (DHI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: