PulteGroup (PHM) Q2 Miss Highlights Need for Selectivity in Group
Goldman Sachs today maintained a Sell rating on PulteGroup (NYSE: PHM) with a price target of $18.00. Comments follow disappointed Q2 results that sent PulteGroup and a number of other homebuilders including KB Home (NYSE: KBH), Toll Brothers Inc. (NYSE: TOL), and Lennar Corp. (NYSE: LEN) lower.
In the view of Goldman Sachs, investors in the group need to remain selective.
"The quarter was weaker than expected with the topline, orders and gross margins all softer than we had estimated. This is the first company this earnings season to miss on all of these items," said analyst Eli Hackel.
"Pulte is generating strong cash flow and has restarted paying a divided and increased its buyback. A clearer capital allocation decision is not surprising although it did occur earlier than we had modeled. However we would focus more on the current growth and profitability at this point in the cycle," he added.
Goldman expects Pulte to trade below the group given the weaker-than-expected results.
For an analyst ratings summary and ratings history on PulteGroup (NYSE: PHM) click here. For more ratings news on PulteGroup click here.
Shares of PulteGroup closed at $18.45 yesterday, with a 52 week range of $9.96-$24.47.
In the view of Goldman Sachs, investors in the group need to remain selective.
"The quarter was weaker than expected with the topline, orders and gross margins all softer than we had estimated. This is the first company this earnings season to miss on all of these items," said analyst Eli Hackel.
"Pulte is generating strong cash flow and has restarted paying a divided and increased its buyback. A clearer capital allocation decision is not surprising although it did occur earlier than we had modeled. However we would focus more on the current growth and profitability at this point in the cycle," he added.
Goldman expects Pulte to trade below the group given the weaker-than-expected results.
For an analyst ratings summary and ratings history on PulteGroup (NYSE: PHM) click here. For more ratings news on PulteGroup click here.
Shares of PulteGroup closed at $18.45 yesterday, with a 52 week range of $9.96-$24.47.