Irvine-based Standard Pacific Corp. had its stock downgraded Tuesday by a Bank of America Securities homebuilding analyst.
Analyst Daniel Oppenheim downgraded shares of Standard Pacific to “neutral” from “buy,” citing increased impairment and liquidity risks in the homebuilder sector.
He also cut his outlook for competing builders Toll Brothers Inc. and Hovnanian Enterprise Inc.
Oppenheim said he expects to see new home demand falling 35% year-over-year this year. That’s a decline of 20% beyond the expected impact of the subprime mortgage industry’s collapse.
Standard Pacific counts a market value of about $630 million, down nearly 70% for the year.
The company’s shares have been on a roller-coaster the past week, ranging from a low of about $8 to a high of more than $11. Shares dropped some 10% in early Tuesday trading, before rebounding in the afternoon.
