Goldman Sachs Adds PulteGroup to Conviction Buy List (PHM)
Goldman Sachs is out with its report today on PulteGroup (NYSE: PHM), adding PHM to its Conviction Buy List.
In a note to clients, Goldman Sachs writes, "We add PulteGroup to the Conviction Buy List as we believe it is the sole name across our universe where investors are already being paid to wait for the housing recovery. Shares have significantly underperformed (PHM -38%, XHB +6%, SPX+11%) over 12 months and now trade at a 25-40% discount to peers on key metrics. Separately, consensus estimates for 2012 have been lowered by 25% since Jan (vs the group flat) as the Street has extrapolated last year's one-off charges to 2011. In contrast, we believe the change in sales approach, targeted cost saves, and decreased writeoffs (to be seen as early as 1Q11) will result in a modestly profitable 2011 vs. consensus of -$0.20/share."
Goldman Sachs has a $10 PT on PHM.
At the time of posting, shares of PHM were trading pre-market at $7.55, up 5.74% from Tuesday's close.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.