PulteGroup stock price target raised to $150 from $141 at UBS

Investing.com - UBS raised its price target on PulteGroup (NYSE:PHM) to $150 from $141 while maintaining a Buy rating on the homebuilder’s stock. The stock, currently trading at $121.17, has shown strong momentum with an 11% gain in the past week. According to InvestingPro, the company maintains a "GREAT" financial health score, with analysts’ targets ranging from $98 to $163.

The price target increase follows PulteGroup’s second-quarter 2025 financial results and revised outlook, despite UBS slightly lowering its earnings per share estimates for 2025 through 2027.

UBS reduced its 2025 EPS estimate from $11.55 to $11.40, its 2026 estimate from $12.75 to $12.45, and its 2027 estimate from $14.10 to $13.85, primarily due to softer than previously modeled volume.

The firm raised its valuation multiple to 12x 2026 estimated EPS from the previous 11x, noting that the second quarter likely represented the final cut to earnings estimates, which typically presents a meaningful opportunity for stock re-rating.

UBS also indicated that market sentiment toward homebuilders is beginning to improve, with growing belief that 2026 could represent an improved year for housing activity, while the firm continues to model flat-to-slightly higher year-over-year group gross margins in 2026.

In other recent news, PulteGroup reported stronger-than-expected earnings for the second quarter of 2025. The company posted earnings per share of $3.03, surpassing the analyst forecast of $2.95. Revenue also exceeded expectations, reaching $4.4 billion compared to the projected $4.38 billion. These results indicate positive developments for the company. Additionally, Seaport Global Securities upgraded PulteGroup’s stock rating from Neutral to Buy. This decision was based on stabilizing fundamentals and favorable guidance for the second quarter of 2025. Seaport Global set a price target of $155.00 for the stock. These recent developments suggest a more favorable investment case for PulteGroup.

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