UPDATE: Citigroup Upgrades Pultegroup to Buy on Improved ROIC Focus

Citigroup raises its rating on Pultegroup

from Neutral to Buy and raises its price target from $9 to $10.50. Citigroup comments, "We assume coverage on PHM shares with a Buy (1) rating and $10.50 target price based on normalized earnings and (relative) forward P/TBV (1CQ13) valuation analysis, highlighted earlier in this report. We anticipate that forward earnings growth will support upside to current valuations and our normalized EPS-based analysis indicates 19.9% upside from current levels." PHM closed at $8.76 on Thursday.