Bear of the Day: Pulte Group (PHM)

Despite being the largest homebuilder in the U.S. with operations in more than 50 markets, Pulte Group (PHM) suffers from high cyclicality in the industry.

The company also faces intense competition from the resale of existing or foreclosed homes, as well as available rental housing.

Furthermore, the sub-prime mortgage crisis continues to adversely affect its sales and pricing in the homebuilding business. Therefore, we continue to recommend shares of the company as Underperform and set a target price of $7.75.

PULTE GROUP ONC (PHM): Free Stock Analysis Report

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