Bank of America analyst Rafe Jadrosich has raised the firm's price target on PulteGroup (PHM) to $145 from $135. He maintains a Buy rating on the shares.
In a year-ahead note to investors on the homebuilder group, Jadrosich stated that after underperforming the market in 2025, homebuilder stocks have rallied sharply so far this year.
However, the analyst told investors the firm believes weaker employment and migration trends, ongoing inflation, and a more competitive selling environment will pressure fundamentals through 2026. This competitive environment is driven by elevated new and resale inventory.
Jadrosich described 2026 as a "reset year for homebuilders" in the note.