Compass Point Maintains Neutral, $1 Target on Hovnanian Enterprises

Compass Points reiterates its Neutral rating and $1 target price on Hovnanian Enterprises HOV as November excels even though quarter continued deterioration trend. Compass Points comments, "While the company reported yet another quarter of grossly negative results, a further deterioration of book value, and muted closings and order performance for the quarter, we are pleasantly surprised by 31% year-over-year growth in orders for November and believe this could be further evidence that the Oct/Nov homebuilding sentiment prints were not flukes." HOV closed at 1.34 per share on Friday.