Homebuilding stocks mixed after UBS moves PulteGroup to buy

Homebuilding stocks were mixed Tuesday, after UBS Securities (UBS) upgraded PulteGroup Inc. (PHM) to buy from neutral. Analysts said the homebuilder’s current valuation provides “an attractive entry point,” and kept their target price for the stock at $8. PulteGroup’s stock is down about 45% this year and traded as high as $46.81 in late July 2005. About 11 months ago, UBS changed its rating on Pulte to neutral from sell with a price target of $8.50. In addition to Pulte, other gainers include KB Home (KBH) and D.R. Horton Inc. (DHI). Meanwhile, Beazer Homes USA Inc. (BZH) and Lennar Corp. (LEN) fell Tuesday. On Monday, Lennar posted a profit of $20.7 million, or 11 cents a share, for its fiscal third quarter, down 31% from $30 million, or 16 cents per share, a year earlier, despite an increase in new home orders. Write to Jason Philyaw. Follow him on Twitter: @jrphilyaw