PulteGroup (PHM) Upgraded to Outperform with $158 Price Target

Wolfe Research upgraded PulteGroup Inc. (PHM) to 'outperform' from 'peer perform' with a target price of $158. The upgrade is based on an increase in built-to-order (BTO) construction projects, expected to drive higher gross margins. Shares rose nearly 1% in late afternoon trading. Wolfe expects BTO to account for 45% of 2Q Orders, aiming for a 60% target by 2027, with an anticipated 50 basis point tailwind to gross margins over time. This update is relevant for investors considering opportunities in the housing market and construction sector.