Standard Pacific "neutral," target price raised

02/06/08 - UBS

NEW YORK, February 6 (newratings.com) - Analysts at UBS maintain their "neutral" rating on Standard Pacific LP (SPF). The target price has been raised from $2.50 to $5.00.

In a research note published this morning, the analysts mention that the company’s near-term liquidity position remains healthy. The analysts add, however, that in the light of heightened capital constraints, Standard Pacific might need to take steps to improve its long-term cash flow position. UBS expects the company to focus on improving its sales volumes, while reducing its working capital requirements, which might pressurize its margins going forward.