LGI Homes downgraded to Sell from Neutral at BTIG

BTIG analyst Carl Reichardt downgraded LGI Homes to Sell from Neutral with a $73 price target. The downgrade is largely based on the stock’s relative valuation as opposed to a specific catalyst or change in view on housing demand, the analyst tells investors in a research note. The firm says LGI’s relative and absolute valuation is high. The stock carries a 36% premium to the group, though the company’s return on equity will not exceed cost of equity this year, BTIG writes. It also believes LGI’s customer base is the most sensitive to interest rates among all the builders it covers.