Goldman Sachs Bullish on PulteGroup (PHM) On Turnaround Progress

Goldman Sachs reiterated its Conviction Buy list rating and $10 price target on PulteGroup (NYSE: PHM) following a meeting with CEO Richard Dugas which left them "encouraged about the company's turnaround and future earnings potential."

The firm notes the the home-builder is in the early stages of a turnaround that will add 300-500 bps to gross margins on SG&A cost cuts and significantly tighter control of capital.

The $100 million 2011 SG&A cuts seem "more achievable" and Goldman believes their is upside potential to 2011-12 estimates due to recent consolidation of divisions from 4 to 3.

For more ratings news on PulteGroup click here and for the rating history of PulteGroup click here.

Shares of PulteGroup closed at $7.46 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Etsy upgraded to buy at BofA on durable growth, buyback potential
• 'We expect salesforce.com (CRM) to capture a meaningful share of next-gen agentic workflows': Cantor
• UBS Reiterates Buy Rating on Dutch Bros Inc. (BROS): 'One of Strongest Growth Stories in Restaurants'