UPDATE: Goldman Sachs Resumes Ryland Group at Buy Rating on Multiple Positive Factors

In a report published Monday, Goldman Sachs analyst Eli Hackel resumed coverage on Ryland Group (NYSE: RYL) with a Buy rating and $51.00 price target.

In the report, Goldman Sachs noted, “We resume coverage of The Ryland Group with a Buy rating and add the shares to the Americas Conviction Buy List. The company ranks first on our themes, with presence in most constructive housing markets, a strong land portfolio, and relatively good exposure to the high-end buyer. Further, we believe Ryland has one of the best capital structures in our coverage leading to a peer-high ROE of 21.5% for 2013. The company has exhibited a prudent acquisition strategy, acquiring three smaller builders in markets like Phoenix, Charlotte, Raleigh, and Texas over the past 12 months. We would not be surprised by further acquisitions in growing markets in the recent future. Further, 75% of Ryland's sales are to the move up market where we expect better purchasing power and mortgage availability than the first-time buyer market. Our $51, 12-month target price implies 32% upside from current levels.”

Ryland Group closed on Friday at $38.65.