Wednesday, August 18, 2010

Market Buzz: Beazer Homes Spikes On Buyout Rumor

Shares of Beazer Homes USA Inc. (NYSE: BZH) soared as much as 7% on speculation that the homebuilder could become a takeover target.

"We think that the likelihood of consolidation in the home-building industry has increased given the industry specific and broader macro economic events of the past few months," noted Citi analyst Josh Levin. "We view consolidation as the proverbial elephant in the room. Management teams are not discussing the issue publicly, but we would be surprised if at least some of them were not talking about it privately."

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