UBS lifts homebuilder PulteGroup's rating, cuts PT for peers

NVR

08/01/2025 15:44

** UBS Research upgrades rating for U.S. homebuilder PulteGroup
 PHM.N  to "buy" from "neutral" 
    ** Expects PHM's margins and return on equity to continue
leading peers and its diversified customer mix supporting
profitability in the changing homebuying market
    ** Sees public homebuilders benefiting from resilient
demand, lack of existing home inventory and procurement and
financing advantages relative to smaller, private competitors
    ** However, UBS cuts PT to $148 from $154, still
representing a 37% upside to the stock's last close
    ** Also cuts PT for peers on mortgage rate volatility and
negative market sentiment for sector
                         
  Company     New PT      Old PT
                         
 DR Horton   $203        $214
  DHI.N                  
 KB Home     $100        $105
  KBH.N                  
 Lennar      $192        $205
  LEN.N                  
 Meritage    $118        $126
 Homes                   
  MTH.N                  
 NVR Inc     $8750       $9450
  NVR.N                  
 Toll        $185        $192
 Brothers                
  TOL.N                  
    ** Four brokerages rate PHM "strong buy", seven "buy" and
seven "hold"; their median PT is $140 - data compiled by LSEG 
        ** PHM rose 5.5% in 2024
  

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))