UPDATE: J.P. Morgan Initiates Taylor Morrison Home at Overweight on Industry Leading Gross Margins

In a report published Monday, J.P. Morgan analyst Michael Rehaut initiated coverage on Taylor Morrison Home (NYSE: TMHC) with an Overweight rating and a price target of $31.00.

In the report, JP Morgan noted that, "...TMHC possesses several favorable fundamental attributes, including near industry leading gross margins, which are at minimum sustainable, in our view, given the company's attractive land position, as well as our outlook for strong, above average order growth supported by a robust U.S. community growth plan and nearly all the lots required to achieve its growth goals under control through 2014."

Taylor Morrison Home closed Friday at $25.33.