Analyst Predicts Moderate Decline In Housing Starts For 2025, Upgrades PulteGroup

Group 1 - Seaport Global analyst Kenneth Zener upgraded PulteGroup (PHM) from Sell to Neutral with a price forecast of $100, indicating a shift in investment sentiment towards the company [1] - Historical data shows that the sector has experienced a 41% decline over the past 21 cycles, with the upper half of stocks falling 24% and the lower half dropping 49%, suggesting a potential for asymmetric returns as the cycle turns [2] - The analyst anticipates a decline in new supply by 15%-20% in the first half of 2025, with current starts at 993k compared to a trough of 847k, indicating a potential acceleration in declines [3] Group 2 - PulteGroup reported fourth-quarter revenues of $4.92 billion, exceeding the consensus estimate of $4.635 billion, and adjusted EPS of $3.50, beating the consensus estimate of $3.27 [4] - Investors can gain exposure to PulteGroup through iShares U.S. Home Construction ETF (ITB) and SPDR Series Trust Homebuilders ETF (XHB) [4] - As of the last check, PHM shares increased by 0.74% to $106.76 [4]