LGI Homes initiated with a Hold at Texas Capital

Texas Capital analyst Alex Rygiel initiated coverage of LGI Homes (LGIH) with a Hold rating and $56 price target The small-cap national homebuilder targets affordability with the lowest average selling price for homes among the publicly traded homebuilders, the analyst tells investors. LGI currently owns more land/lots than it has options for, which creates some inventory risk, says the analyst. However, as the company has not taken a meaningful impairment in recent history, the firm believes this land/lot and home inventory “could bode well should demand return quickly,” the firm added.