UPDATE: ISI Group Reiterates Buy Rating, Raises PT on PulteGroup

In a report published Friday, ISI Group reiterated its Buy rating on PulteGroup PHM, and raised its price target to $14.00. ISI Group noted, “Since turning positive on this story nearly a year ago, we have argued that the changes being executed at PHM were the right moves and could fundamentally change the company. After heading in the right direction, execution takes over as the preeminent concern. We believe this quarter's results and conference call commentary will become the turning point in the equity's fight for a more appropriate valuation versus its peers as execution and mortgage putback concerns were mitigated. Until the mortgage putback issue is completely resolved, we do not see the equity trading on par with the bellwethers of the group, but we do expect the valuation delta can be closed by half or two-thirds. Consistent with that, we are raising our price target to $14. PulteGroup closed on Thursday at $11.86.