UPDATE - UBS upgraded PulteGroup (NYSE: PHM) to Buy; Valuation Provides Attractive Entry Point

UPDATE - UBS upgraded PulteGroup (NYSE: PHM) from Neutral to Buy, price target remains $8.00.

UBS analyst says, "Since 6/28 PHM -45% vs. the S&P 500 -7%. In turn, it currently trades at 0.8x tangible BV, in line with peers, providing what we view as an attractive entry point. Our view is based on our belief that: 1) the results of management’s efforts to bring costs more in line with peers will begin to come through, even in a slow/no growth environment and 2) the company’s financial flexibility will support future growth as conditions improve. As such, we are upgrading PHM."

"Opportunities Arise As New Home Market Bottoms - Although we acknowledge that recent macro indicators may suggest weaker near-term economic trends, we believe fundamentals for new homes are at—or near—a trough. While visibility for a turnaround is limited, we believe current valuations for selective builders offer attractive buying opportunities with minimal downside and significant upside potential. Our top picks in the group are D.R. Horton (NYSE: DHI), Lennar (NYSE: LEN), and Toll Bros. (NYSE: TOL)."

To see more ratings on PHM, Click Here

You May Also Be Interested In

• Mizuho Upgrades Airbnb Inc. (ABNB) to Buy, 'We see opportunities'
• 'Catalysts on the horizon:' Airbnb (ABNB) upgraded to Buy at Mizuho, shares climb
• Pivotal Research Upgrades Sirius XM Radio (SIRI) to Buy, 'Free Cash Flow Acceleration Story'