Wedbush upgrades Pulte to 'outperform' as it sees stock undervalued

Investing.com

04 Jan

Investing.com -- Wedbush upgraded PulteGroup Inc (NYSE:PHM) to "outperform" from "neutral" given an overdone stock price decline and strong catalysts for growth. Shares were up 2.1% at $110.

Pulte stock has dropped about 27% since hitting a record high of $149.47 on Oct. 18, even as the S&P 500 gained 2% during the same period. Wedbush expects lower mortgage rates and improved credit availability in 2025 to support the homebuilder's growth.

The firm raised its Q4 earnings estimate for Pulte to $3.29 per share, above the Refinitiv consensus of $3.28, on expectations of stronger home closings. It also increased FY25 and FY26 EPS forecasts to $14.58 and $16.29, respectively, citing mid-single-digit revenue growth off a higher base in FY24.

Wedbush highlighted Pulte’s robust capital return strategy, including over $1.5 billion in stock buybacks authorized in 2024, and its pristine balance sheet, which is expected to move into a net cash position by the end of FY24.

The brokerage set a price target of $135, based on a 2 times multiple of its FY25 tangible book value estimate of $68.28. Despite trading at a premium to peers, Wedbush views Pulte as undervalued given its financial strength and growth prospects.

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Shares were up 2.1% at $110.\nPulte ...</p>\n\n<a href=\"https://finance.yahoo.com/news/wedbush-upgrades-pulte-outperform-sees-162503803.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PHM","symbol_name":"普得集团","start_time":0,"source_url":"https://finance.yahoo.com/news/wedbush-upgrades-pulte-outperform-sees-162503803.html","article_id":"2500922145","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2500922145","pubTimestamp":1735921503,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Investing.com --Wedbush upgraded PulteGroup Inc  to \"outperform\" from \"neutral\" given an overdone stock price decline and strong catalysts for growth. Shares were up 2.1% at $110.Pulte stock has dropped about 27% since hitting a record high of $149.47 on Oct. 18, even as the S&P 500 gained 2% during the same period. Wedbush expects lower mortgage rates and improved credit availability in 2025 to support the homebuilder's growth.The firm raised its Q4 earnings estimate for Pulte to $3.29 per share, above the Refinitiv consensus of $3.28, on expectations of stronger home closings. 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Shares were up 2.1% at $110.\nPulte stock has dropped about 27% since hitting a record high of $149.47 on Oct. 18, even as the S&P 500 gained 2% during the same period. Wedbush expects lower mortgage rates and improved credit availability in 2025 to support the homebuilder's growth.\nThe firm raised its Q4 earnings estimate for Pulte to $3.29 per share, above the Refinitiv consensus of $3.28, on expectations of stronger home closings. It also increased FY25 and FY26 EPS forecasts to $14.58 and $16.29, respectively, citing mid-single-digit revenue growth off a higher base in FY24.\nWedbush highlighted Pulte’s robust capital return strategy, including over $1.5 billion in stock buybacks authorized in 2024, and its pristine balance sheet, which is expected to move into a net cash position by the end of FY24.\nThe brokerage set a price target of $135, based on a 2 times multiple of its FY25 tangible book value estimate of $68.28. Despite trading at a premium to peers, Wedbush views Pulte as undervalued given its financial strength and growth prospects.\nRelated Articles\nWedbush upgrades Pulte to 'outperform' as it sees stock undervalued\nBiden blocks takeover of U.S. Steel by Japan's Nippon Steel\nEngine maker GE joins South Korean probe of fatal plane crash","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1}}}