Wedbush upgrades PulteGroup to 'outperform' due to undervaluation and growth outlook

From Investing.com: 2025-01-03 11:15:03

Wedbush upgraded PulteGroup Inc to “outperform” from “neutral” due to stock price decline and growth catalysts. Pulte stock fell 27% since hitting $149.47 on Oct. 18, despite the S&P 500 rising 2%. Wedbush raised Q4 earnings estimate to $3.29/share, with FY25 and FY26 EPS forecasts at $14.58 and $16.29 respectively.

Pulte’s lower mortgage rates and improved credit availability in 2025 are expected to drive growth. Wedbush praised Pulte’s capital return strategy, including $1.5 billion in stock buybacks in 2024. The brokerage set a price target of $135 based on a 2 times multiple of FY25 tangible book value estimate of $68.28.



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