PulteGroup initiated with a Buy at Jefferies

Jefferies initiated coverage of PulteGroup with a Buy rating and $107 price target amid starting coverage on the three largest U.S. homebuilders. While the analyst believes the builders have favorable long-term demand trends, the next several quarters could be “choppy” with buyers facing affordability issues, so the firm is “picking our spots until we get more clarity on the macro,” the analyst tells investors. While PulteGroup will see similar macro headwinds as its larger competitors, the firm believes it could be more protected on pricing and margin with its homes more diversified across price points, the analyst tells investors.