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PulteGroup (PHM) Raised to Outperform at Wells Fargo

August 19, 2013 7:11 AM EDT Send to a Friend
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Price: $19.02 -1.04%

Rating Summary:
    12 Buy, 7 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 14 | New: 52
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Wells Fargo upgraded PulteGroup (NYSE: PHM) from Market Perform to Outperform with a price target of $19-$20 (from $16.50-$16.50). Analyst Adam Rudiger noted compelling valuation and he thinks a favorable buyer mix will limit downside.

"We are upgrading shares of PHM to Outperform from Market Perform primarily because we see limited downside risk with shares trading at 1.25x our forward twelve months adjusted price-to-book value estimate and because we believe it is better positioned to weather higher mortgage rates than peers more focused on the entry-level buyer (approximately 75% of closings in recent quarters have come from move-up and active adult buyers)," said Rudiger.

"We expect U.S. residential construction to continue to grow in 2013 given attractve affordability, limited new and existing inventory and pent-up demand due to several years of subpar household formations," he added.

For an analyst ratings summary and ratings history on PulteGroup (NYSE: PHM) click here. For more ratings news on PulteGroup click here.

Shares of PulteGroup closed at $16.28 yesterday.




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