Shares of Irvine-based homebuilder Standard Pacific Corp. fell Monday after an analyst said the stock’s rebound has gotten ahead of itself with more big writedowns on land due this year and next.
Standard Pacific closed down 6% Monday with a market value of about $347 million. The shares are up about 70% from the start of the year in a rebound from the housing crash.
A J.P. Morgan Securities report downgraded Standard Pacific to “underweight” from “outperform.” The company stands to see more writedowns on falling values for land in California, Florida and Arizona, the report said.
Standard Pacific could see charges for lower land values of $343 million in second half of 2008 and $380 million in 2009, according to the report.
In the second quarter, Standard Pacific reported a loss of $248.2 million, driven by $149 million in write-offs for unsold homes and undeveloped land.
The company, among the hardest hit among homebuilders in the downturn that started in 2007, recently got a $530 million investment from MatlinPatterson Global Advisors LLC.
