Barclays analyst Matthew Bouley raised the firm’s price target on PulteGroup to $86 from $75 and keeps an Overweight rating on the shares. The analyst "sharply" increased estimates post the Q1 results and expects homebuilders overall should continue to outperform the market as new residential construction improves. PulteGroup "has among the most severe disconnects between valuation and returns," the analyst tells investors in a research note. The firm thinks the company’s results further illustrate new construction’s inflection from the trough, as the need for affordable supply in the "inventory-starved" U.S.
Published first on TheFly
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