|J.P. Morgan Cuts Centex, Ryland Group >CTX RYL
Dow Jones Newswires
J.P. Morgan cut homebuilder Ryland Group Inc. (RYL) to neutral from overweight, citing valuation, and Centex Corp. (CTX) to underweight from neutral.
The broker said Ryland remains a defensive name, given its geographic diversification and its unique share-repurchase strategy.
Regarding Centex, J.P. Morgan said that although it remains impressed with the company's above-average focus on cost savings and share repurchases, it believes these effects will be overshadowed by its generally less aggressive growth strategy in the near term.