The St. Joe Company (JOE) is one of the largest real estate developers in Florida, which has been hit hard by the downturn in the U.S. housing industry. Large price declines have led to significantly high levels of inventory and operations have deteriorated rapidly.
St. Joe has also recorded huge asset impairment charges related to write-down of assets. The company is currently in a defensive mode and continues to reduce capital expenditures to conserve cash.
Our recommendation for the company is Underperform as we anticipate it to perform well below the broader market. However, if St. Joe can tide over the current storm, the share price can rise.Zacks Investment Research
