Hovnanian initiated with a Neutral at Wedbush

Wedbush initiated coverage of Hovnanian (HOV) with a Neutral rating and $155 price target At current levels, the firm believes the shares reflect the improved balance sheet with net debt to cap declining from 146% in 2019 to 49% by 2024 and GAAP net income moving from (42M) in FY19 to a positive $231M inFY24. However, with the shares trading at 1.6-times book value versus the group at 1.4-times and with a 49% net debt/cap ratio versus the group at 22%, Wedbush anticipates Hovnanian’s stock price fairly reflects these catalysts.