Analyst Rafe Jadrosich of Bank of America Securities maintained a Buy rating on PulteGroup, reducing the price target to $135.00.
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Rafe Jadrosich has given his Buy rating due to a combination of factors that highlight PulteGroup’s strong financial and operational position. The company demonstrates an attractive return on equity and capital return compared to its peers, which is a significant factor in maintaining the Buy rating. Additionally, PulteGroup’s strategic management of inventory, particularly the reduction of speculative homes, positions it well for future market conditions.
Another reason for the positive outlook is the company’s improved cycle times, which provide flexibility in production management. PulteGroup is also expected to benefit from an increased mix of higher-margin active adult homes by 2026, driven by the expansion of its Del Webb Explore series. Furthermore, the company’s performance in key markets like Florida, the Carolinas, and the Northeast, along with stable construction costs, supports the Buy rating. These elements collectively contribute to a favorable long-term growth trajectory for PulteGroup.
Jadrosich covers the Consumer Cyclical sector, focusing on stocks such as PulteGroup, NVR, and KB Home. According to TipRanks, Jadrosich has an average return of 8.8% and a 56.51% success rate on recommended stocks.
In another report released on December 4, J.P. Morgan also maintained a Buy rating on the stock with a $149.00 price target.