Shares of M/I Homes (MHO) surged over 5% on Monday morning after Wedbush upgraded the homebuilder stock to "Outperform" from "Neutral" and raised its price target to $185 from $155. The positive analyst action came following M/I Homes' latest quarterly results, which prompted Wedbush to become more bullish on the company's prospects.

The upgrade and increased price target provided a significant boost to M/I Homes' stock, with shares trading higher by 5.04% to $171.20 as of 9:46 a.m. ET. The sharp rally reflects investor optimism following Wedbush's endorsement, as the new price target implies further upside potential of around 8% from current levels.