REAL ESTATE : Investment Bank Rates Presley Cos. Stock ‘Very Attractive’
Donaldson, Lufkin & Jenrette is again tracking Presley Cos. and finds the Newport Beach home builder’s stock “very attractive.”
Noting that Presley recently sold $200 million of junk bonds and reorganized its finances, a report from the New York investment bank predicts that Presley “can finally position itself to respond to an improving California economy.”
The seven-page report cautions, however, that Presley’s stock “remains a speculation, but now we believe the speculation is not on the company’s survival but on how quickly earnings improve.”
The company is projecting earnings of $1 to $1.25 a share by 1997 and a stock price of $6 a share within a year. The stock was trading at just above $3 a share in this week’s trading on the New York Stock Exchange.
Donaldson Lufkin analysts had followed the company earlier but stopped doing so after Presley’s stock took a nose dive during the real estate downturn of the early 1990s.
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