UPDATE: Williams Financial Group Upgrades PulteGroup on Favorable Long-Term Outlook

In a report published Tuesday, Williams Financial Group analyst David N. Williams upgraded PulteGroup (NYSE: PHM) from Hold to Buy, but lowered the price target from $23.00 to $21.00.

In the report, Williams Financial Group noted, “We are upgrading shares of PHM from a Hold to a Buy rating. Although the most recent earnings report was disappointing from an order growth perspective, we believe the longer outlook remains favorable. Given recent share pressures, we view current prices as an attractive entry point even as multiples continue to compress. Our new FY14 numbers reflect the recent order growth headwinds; however, we are expecting community count expansion to accelerate in the coming quarters,re‐invigorating new order growth.”

PulteGroup closed on Monday at $16.39.