In a report released today, Alex Rygiel from B.Riley FBR reiterated a Buy rating on Legacy Housing Corp (LEGH), with a price target of $16. The company’s shares closed on Friday at $12.56.
Rygiel observed:
“We reiterate our Buy rating on the shares of Legacy Housing Corp. (LEGH) following two competitors’ June quarter results last week. In our opinion, LEGH is the most attractively valued manufactured home producer and believe the company could deliver industry leading book value growth over the coming years of 20% or more. The company will be announcing 2Q results in early/mid August. We remind investors to focus on the quality of earnings and book value growth (as is management) given the company’s attractive (and under-appreciated) loan portfolio with less emphasis on net revenue. In our view, upside to future stock price appreciation could also be the result of multiple expansion up to LEGH’s public peers. Our price target of $16 offers 25% upside; a peer multiple would suggest a $21 target or 70%+ upside.”
According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 6.1% and a 55.5% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and MYR Group.
Legacy Housing Corp has an analyst consensus of Moderate Buy, with a price target consensus of $16.
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Based on Legacy Housing Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $7.21 million. In comparison, last year the company had a net profit of $9.61 million.
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Legacy Housing Corp. engages in the selling, building, and financing manufactured homes and tiny houses that are distributed through a network of independent retailers and company-owned stores and are sold directly to manufactured home communities.
