PulteGroup (PHM) PT Lowered to $28 at Mizuho Securities Following 3Q Report

Mizuho Securities analyst Haendel St. Juste lowered the price target on PulteGroup (NYSE: PHM) to $28.00 (from $31.00) while maintaining a Neutral rating following the company's 3Q earnings report. PHM posted 3Q EPS of $1.01 vs consensus of $0.95, supported by +27% revenue.

Despite the beat, investors' focus was on PHM's tepid 1% orders growth and management's less sanguine tone regarding the impact of affordability on near-term demand. While it's too early to decipher whether this "pause" in demand is temporary or whether it is cause for greater concern, St. Juste thinks there is limited downside risk with PHM trading near our Bear Case valuation, implying an asymmetric risk/reward, barring a near-term recession.

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