Forestar Group upgraded to Buy from Neutral at BTIG

BTIG upgraded Forestar Group (FOR) to Buy from Neutral with a $32 price target. The company’s earnings will be stronger than thought, as its partner D. R. Horton (DHI) will likely grow its orders faster than anticipated over the next 18 months, requiring an increase in lots purchased, the analyst tells investors in a research note. The firm increased Forestar estimates on better volume and higher margin assumptions. BTIG says small local lot developers are likely to be hamstrung by a cutback in capital availability by regional banks, benefiting national player Forestar Group. It sees the company ramping market share gains, taking more substantial share of the “fragmented” lot development industry.