Meritage Homes upgraded to Buy from Hold at Goldman Sachs

Goldman Sachs upgraded Meritage Homes (MTH) to Buy from Hold with a price target of $235, up from $205. The firm looks for new homes to continue to comprise a greater portion of total housing transactions over the next 12-18 months. Meritage’s strategy of offering quick close, move-in ready new homes leaves it well positioned for above average growth as it offers a more compelling alternative to existing units, the analyst tells investors in a research note. It sees the current valuation as an attractive entry point.