Deutsche Bank Upgrades PulteGroup (PHM) to Buy

Deutsche Bank upgraded PulteGroup (NYSE: PHM) from Hold to Buy with a price target of $27.00 (from $20.00). Last week the company reported Q2 results and announced the next phase of a value creation plan.

Analyst Nishu Sood said, "Pulte's de-emphasis of growth through much of the recent housing recovery led to a surfeit of cash, which in turn contributed to a late cycle surge in land spend and higher-than peer sg&a. These issues are now being directly addressed and discipline enforced through a share repurchase plan; however, the inherently anti-growth stance of management's value creation plan remains to be addressed. With the change process begun, we believe that new management is likely to focus on operations as well, driving faster growth and quicker monetization of assets. On the basis of this further likely change, we increase our price target to $27 and our stock rating to Buy."

For an analyst ratings summary and ratings history on PulteGroup click here. For more ratings news on PulteGroup click here.

Shares of PulteGroup closed at $21.85 yesterday.

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