UPDATE: Goldman Sachs Initiates Taylor Morrison Home at Neutral on Expected Slower Growth

In a report published Monday, Goldman Sachs analyst Eli Hackel initiated coverage on Taylor Morrison Home (NYSE: TMHC) with a Neutral rating and $27.00 price target.

In the report, Goldman Sachs noted, “We initiate coverage of Taylor Morrison Home Corporation (TMHC), a top 15 builder in the United States and operations in Canada, with a Neutral rating and a $27, 12-month target price. Taylor Morrison has presence in the most constructive housing markets in the US, and we believe the company has been gaining share in these markets. Further, the company has a 74% exposure to the move up buyer, who has a higher purchasing power and better access to mortgages. The company is has a large land supply (11.1 years of supply on LTM deliveries) and over 80% of it was acquired since 2009 at attractive prices, which we view positively leading up to the recovery. However, we expect the company to derive 17% of its sales from its high- and low-rise Canadian market which is inherently lumpy and which we do not expect to grow at the same pace as the US market.”

Taylor Morrison Home closed on Friday at $25.45.