After D.R. Horton (DHI) made an unsolicited bid for Forestar Group (FOR), Wells Fargo says that acquiring Forestar would enable D.R. Horton "to grow at a double digit rate while mitigating incremental risk." The analyst says that the deal would give D.R. Horton "a solid competitive advantage" and enable it to grow more quickly while "mitigating potential impairment risk through the cycle." Wells thinks that D.R. Horton will enter into a "bidding war" with Starwood Capital, which had previously agreed to take Forestar private for $14 per share. Wells keeps an Outperform rating on D.R. Horton.