UBS analyst David Goldberg in a note Monday raised his target price on Beazer Homes USA Inc. (BZH) shares to $4.25 from $2.75 but said he remains "cautious" on the home-builder's stock.

"Although the company's liquidity remains a concern (especially given the possibility of tripping covenants, though we don't expect this to be an issue for at least nine months) we believe the potential downside from the current valuation warrants a neutral rating," Goldberg wrote. "Accordingly, we're on the sidelines, awaiting better visibility on management's plans to improve its financial flexibility."

Beazer shares were off 2.36% to $4.10 in recent action.

-By John Spence, 415-439-6400; AskNewswires@dowjones.com