RBC Capital Downgrades Taylor Morrison Home Corp. (TMHC) Rating to Sector Perform

Taylor Morrison Home Corp. (NYSE:TMHC) is one of the 8 Real Estate Stocks to Buy Beyond REITs. On June 2, RBC Capital downgraded its rating on Taylor Morrison to Sector Perform from Outperform, while maintaining a price target of $72.50, according to a report by TheFly. The analyst views the takeover of the firm by Berkshire Hathaway as highly probable, adding that this will be a solid outcome for Taylor Morrison shareholders.

On May 31, Taylor Morrison Home and Berkshire Hathaway Inc. announced that they have reached a definitive agreement for the latter’s acquisition of Taylor Morrison for $72.50 per common share in cash. This represents a total equity value for Taylor Morrison of approximately $6.8 billion and a total enterprise value of approximately $8.5 billion.

Closing of the transaction is expected in the second half of the year and is subject to customary closing conditions, including approval by Taylor Morrison stockholders and receipt of required regulatory approvals.

Taylor Morrison (NYSE:TMHC) is a national community developer and homebuilder with over 350 communities in the country. The company serves a diverse range of homebuyers across the entry-level, move-up, and resort-lifestyle segments under its Taylor Morrison and Esplanade brands, and develops rental communities under its Yardly brand.

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