Millrose Properties initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Julien Blouin initiated coverage of Millrose Properties (MRP) with a Buy rating and $25 price target indicating total return of 21%. The company aims to generate cash flows through option payments received from homebuilders that allow them to purchase home sites from Millrose at pre-agreed prices, and on pre-agreed takedown schedules, the analyst tells investors in a research note. The firm says the shares currently trade at a 34% discount to the company’s book value per share, which should narrow as Millrose demonstrates the consistency of its cash flow generation, and as it grows through accretive deployment of its leverage capacity.