PulteGroup price target lowered to $145 from $156 at BTIG

BTIG lowered the firm’s price target on PulteGroup (PHM) to $145 from $156 and keeps a Buy rating on the shares. The company’s EPS beat was primarily driven by a $255M, 93c per share, insurance benefit to SG&A, and backing out the benefit brings EPS to $3.50 and SG&A/sales to 9.6%, $0.02 below the firm’s estimate and 80 bps above SG&A/sales estimate, the analyst tells investors in a research note. PulteGroup is seeing “green shoots” – including positive seasonal order activity year-to-date – leading up to the spring selling season, though BTIG expects PulteGroup to be aggressive in reducing entry-level spec building this spring, impacting margins, the firm added.