Century Communities initiated with an Outperform at Citizens

Citizens initiated coverage of Century Communities (CCS) with an Outperform rating and $92 price target The shares are attractively valued at the current level of 70% of tangible book value, the analyst tells investors in a research note. The firm believes Century’s valuation reflects an environment where homebuilders are losing money and book value equity is deteriorating, “which is not the case.” The Federal Reserve is transitioning to a lower rate environment and the millennial cohort is a demographic tailwind for the company “that should not be ignored,” contends Citizens.