UBS lifts homebuilder PulteGroup's rating, cuts PT for peers

** UBS Research upgrades rating for U.S. homebuilder PulteGroup PHM to "buy" from "neutral"

** Expects PHM's margins and return on equity to continue leading peers and its diversified customer mix supporting profitability in the changing homebuying market

** Sees public homebuilders benefiting from resilient demand, lack of existing home inventory and procurement and financing advantages relative to smaller, private competitors

** However, UBS cuts PT to $148 from $154, still representing a 37% upside to the stock's last close

** Also cuts PT for peers on mortgage rate volatility and negative market sentiment for sector

** Four brokerages rate PHM "strong buy", seven "buy" and seven "hold"; their median PT is $140 - data compiled by LSEG

** PHM rose 5.5% in 2024