Meritage Homes initiated with an Outperform at Citizens

Citizens initiated coverage of Meritage Homes (MTH) with an Outperform rating and $90 price target The firm says Meritage provides an opportunity to own a top five volume builder at a “relatively inexpensive valuation.” The company’s core entry level consumer is still suffering from affordability and confidence issues, but investors are “being paid to wait out the consumer” as Meritage’s current dividend yield of 2.4% is more than double the S&P 500’s 1.2% yield, the analyst tells investors in a research note.