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Investing.com - Seaport Global Securities upgraded PulteGroup (NYSE:PHM) from Neutral to Buy on Tuesday, setting a price target of $155.00. The target represents significant upside potential from the current price of $120.66, with InvestingPro analysis indicating the stock is currently undervalued.
The upgrade comes as PulteGroup has underperformed relative to the market while showing signs of stabilizing fundamentals, according to Seaport Global. The firm noted that second-quarter 2025 guidance has affirmed a more favorable investment case for the homebuilder. With a "GREAT" financial health score and P/E ratio of 8.39x, InvestingPro data reveals strong underlying metrics supporting this positive outlook.
Seaport Global indicated that previous concerns regarding PulteGroup’s EBIT exposure in Florida are diminishing. The firm explained that high asset returns in this region appear more insulated from excess supply than previously thought, particularly due to well-funded discretionary buyers. The company’s strong position is further evidenced by its aggressive share buyback program and 7-year streak of dividend increases.
In conjunction with the rating change, Seaport Global modestly raised its fiscal year 2025 earnings estimate for PulteGroup to $11.18 per share.
The firm also trimmed its fiscal year 2026 earnings forecast to $10.10 per share, citing modest margin pressure and lower year-end inventory expectations.
In other recent news, PulteGroup Inc. reported better-than-expected earnings for the second quarter of 2025. The company achieved earnings per share of $3.03, surpassing the analyst forecast of $2.95. Additionally, PulteGroup’s revenue slightly exceeded expectations, reaching $4.4 billion compared to the projected $4.38 billion. These results indicate a positive financial performance for the company. Analysts from various firms have been closely monitoring PulteGroup’s developments, reflecting a keen interest in its financial health. The recent earnings call highlighted the company’s ability to outperform market predictions. This performance may influence future evaluations and expectations from analysts and investors alike. These developments are part of the latest updates concerning PulteGroup’s financial activities.
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