UPDATE: BofA Securities Upgrades PulteGroup (PHM) to Buy

BofA Securities analyst Rafe Jadrosich upgraded PulteGroup (NYSE: PHM) from Underperform to Buy, PT $58.00.

The analyst comments "We upgrade PulteGroup to Buy (from Underperform), but maintain our $58 PO. Our price objective is based on 1.5X price-to-book (forward). PHM currently trades at discount on price-to-book relative to its return-on-equity compared to peers. We expect PHM to outperform on a relative basis vs. peers given: (1) PHM is generating a higher ROE than most peers in our coverage and trades at a discount relative to this ROE, (2) PHM has a strong history of capital return including recently announced a $1bn share repurchase program, and (3) industry tailwinds and fundamentals remain strong, despite the recent increase in interest rates."

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 $48.66 yesterday.

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