PulteGroup upgraded at UBS as stock pullbak an opportunity to buy

UBS upgraded PulteGroup (PHM) to Buy from Neutral with a price target of $148, down from $154. PulteGroup’s gross margins and return on equity are positioned to continue leading peers, while its current customer mix of roughly 40% first-time, 40% move-up and 20% active adult supports profitability and provides some diversification in an evolving homebuying market, the analyst tells investors in a research note. The firm says the pullback in shares has created an attractive buying opportunity for the homebuilder.