Morgan Stanley is cautious on U.S. homebuilders.

Morgan Stanley initiates coverage of U.S. homebuilders with a cautious view. Analyst Adam Kramer wrote in a note to clients: "We initiate coverage of the homebuilders with a cautious industry view." He noted that these builders have gained market share, reduced leverage, and "shifted to a more asset-light land strategy, resulting in better cash flow and greater buyback capacity."