UPDATE: Sterne Agee Downgrades NVR Based on "Fair" Valuation

In a report published Monday, Sterne Agee analyst Jay McCanless reduced his rating on NVR (NYSE: NVR) from Buy to Neutral following the company's stock price exceeding the analyst's $1,150.00 price target.

McCanless noted that this downgrade is a direct result from NVR's 9.2% increase since the beginning of 2014. The analyst commented, “We believe the current valuation fairly reflects the growth we expect over the next twelve months, and we do not see a catalyst worthy of a higher target price or higher valuation multiple.”

Sterne Agee's EPS estimates for FY14 and FY15 remain unchanged.

Shares of NVR, Inc. closed at $1,153.41 on Friday and are currently down 1.79% at $1,132.77.