UBS Reiterates Buy on PulteGroup (PHM) Following Investor Meetings
- Wall Street rises, buoyed by economic data; Dow sets high
- Twitter (TWTR) 'Takeover Money' Moves On as 'Trump Money' Moves In
- Amazon (AMZN) Could Open Over 2,000 Brick-and Mortar Groceries if Tests Succeed - DJ; Kroger (KR) on Watch
- Buy Any Seasonal Market Weakness Ahead of Year End Rally - Oppenheimer (SPY)
- After-Hours Stock Movers 12/05: (TXMD) (COUP) (BOBE) Higher; (SB) (LXRX) (STWD) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
UBS reiterated a Buy rating and $25.00 price target on PulteGroup (NYSE: PHM) following recent investor meetings with management. A recurring point in management’s dialogue is their dedication to driving profitability regardless of product type. However, with the appointment of Ryan Marshall to CEO and the addition of four new board members since 2Q, UBS believes that Pulte’s changes are behind it.
Analyst Susan Maklari commented, "Our recent investor meetings with Pulte management confirmed our belief that the company is well positioned to realize accelerated growth while furthering its commitment to shareholder returns. This includes the more recent evolution of Pulte’s Value Creation strategy—a key topic of conversation—under which it will moderate the rate of growth in land spend and allocate this cash flow to help fund $1.5bn of share repurchases through 2017. Additionally, as it has taken steps to reduce overhead, we expect this along with top-line unit expansion to drive greater operating leverage over the next 18-24 months. We are encouraged by the results to date and look for accelerated earnings growth given these company-specific factors, and a favorable operating environment, allowing for upside to the current valuation."
Shares of PulteGroup closed at $19.57 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Berkshire Hathaway (BRK-A) Book Value Could Be Boosted by $29B from Trump Tax Plan - Analyst
- Jefferies Raises Price Target on Illinois Tool Works (ITW) Following Analyst Day
- PharmaMar Presents Positive Results With Its Conjugated Antibody MI130110 in CD13-Expressing Tumor-Cells
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!