Evercore ISI analyst Stephen Kim upgraded PulteGroup (NYSE: PHM) from In Line to Outperform with a price target of $146.00 (from $143.00).

The analyst comments: "Rising mortgage rates and volatile macroeconomic conditions continue to weigh on consumer confidence and affordability, and as a result, homebuying demand. Thus far, the active adult and move-up segments have outperformed relative to the entry-level, where affordability concerns remain intense. Accordingly, PHM and TOL have sustained meaningfully higher operating margins than the majority of their peers and have seen considerably less deterioration relative to 4Q19. While we wait for a broader-based turn in fundamentals to materialize, we expect the strength in the higher-end segments to remain more resilient and help sustain PHM’s and TOL’s earnings and cash flow, particularly on a relative basis. Thus, even as our estimates decline modestly, we upgrade PHM and TOL to Outperform."

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Shares of PulteGroup closed at $120.33 yesterday.