PulteGroup stock rating reiterated at Outperform by Oppenheimer

Published 13/10/2025, 12:12
PulteGroup stock rating reiterated at Outperform by Oppenheimer

Investing.com - Oppenheimer maintained its Outperform rating and $140.00 price target on PulteGroup (NYSE:PHM) despite the stock’s recent decline. According to InvestingPro data, the company currently trades at an attractive P/E ratio of 9x and shows GREAT financial health scores across key metrics.

PulteGroup shares fell more than 10% last week, significantly underperforming the S&P 500’s 1.2% drop. According to Oppenheimer, the decline was primarily driven by increasingly hostile political rhetoric directed at homebuilders.

Despite these headwinds, Oppenheimer views PulteGroup as a "relative winner" in the current environment, citing the company’s buyer diversity and geographic mix as advantages. The firm also noted that PulteGroup appears less exposed to discounting and increased incentives that spec builders might offer to close out their fiscal years.

Looking ahead to 2026, Oppenheimer identified potential company-specific tailwinds for PulteGroup, including a ramp-up in active adult communities and the possibility of improved trends in Florida.

The research firm also highlighted PulteGroup’s structural return on equity (ROE) advantage compared to peers, suggesting this difference justifies a higher multiple for the stock.

In other recent news, PulteGroup announced a quarterly cash dividend of $0.22 per share, payable on October 2, 2025, to shareholders of record as of September 16, 2025. BofA Securities raised its price target for PulteGroup to $140, maintaining a Buy rating, citing strong second-quarter gross margins of 27.0%, which surpassed their forecast. Similarly, UBS increased its price target to $150 while also maintaining a Buy rating, despite slightly lowering its earnings per share estimates for 2025 through 2027. Additionally, PulteGroup plans to expand its Del Webb brand with two new active-adult communities in Columbus, Ohio, set to open in Spring 2026. The communities, Del Webb Maygrass and Del Webb Explore at Northstar, aim to attract residents 55 and older, as well as homebuyers of all ages. In the market, PulteGroup’s stock climbed 3% after recent soft jobs data led to a drop in short-term Treasury yields, boosting homebuilder stocks. These developments reflect PulteGroup’s ongoing strategic initiatives and market performance.

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