HOVNP

Hovnanian Enterprises' preferred shares are downgraded to ‘buy' due to deteriorating housing market fundamentals and rising interest rate risks. HOVNP offers a 9.69% yield and trades at a 26.4% discount to liquidation value, but non-cumulative status increases risk in adverse scenarios. The company's net leverage has improved, but recent quarters show declining deliveries, higher cancellations, and lower backlog pricing.