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KeyBanc Upgrades Ryland Group; Raises Price Target for Lennar (RYL, LEN)

KeyBanc has upgraded home builder, The Ryland Group, Inc.( RYL ) to a "Buy," and also increased its price target for competitor, Lennar Corporation( LEN ).

The firm has upgraded RYL from a "Hold" to a "Buy," and has given the company a $43 price target. This price suggests a 19.7% increase of the stock's current price of $34.51.

Additionally, the company has reaffirmed a "Buy" rating for LEN, and has risen its price target from $36 to $46. This new price target suggests a 16.5% increase over the stock's current price of $38.41.

An analyst from the firm commented, "we think builders like RYL and LEN that committed to growing community count in 2013 (15-20% and 15%, respectively) will outperform other builders' order trends. We think community growth reflects company-specific catalysts tied to effective capital deployment, supporting a higher sales pace and gross margins."

The Ryland Group and Lennar Corporation shares were mostly flat during premarket trading Friday.

The Bottom Line

Shares of The Ryland Group ( RYL ) have a .35% dividend yield, based on last night's closing stock price of $34.51. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $35-$38 price levels. Shares of Lennar Corp ( LEN ) have a .42% dividend yield, based on last night's closing stock price of $38.41. The stock has technical support in the $34-$35 price area. If the shares can firm up, we see overhead resistance around the $42 price level.

The Ryland Group, Inc.( RYL ) and Lennar Corporation( LEN ) are not recommended at this time, holding Dividend.com DARS™ Ratings of 3.4 and 3.2 out of 5 stars respectively.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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