Pulte Homes gets strong in 08... Good Industry News

Pulte Homes rallies to 3-mo. high on improved liquidity; BofA lifts price target January 31, 2008: 11:52 AM EST

NEW YORK, Jan. 31, 2008 (Thomson Financial delivered by Newstex) -- Shares of Pulte Homes (NYSE:PHM) surged to a 3-month high Thursday, as Wall Street cheered the third-largest homebuilder's improved liquidity position.

The stock ran up 13% to $15.28, and hit a high of $15.35 in intraday trading, the highest price seen since Oct. 31. The stock turned sharply higher after opening the session down as much as 5.5%.

Pulte reported late Wednesday a fourth-quarter net loss of $874.7 million, or $3.46 a share, including a $543.3 million inventory impairment charge, compared with a loss of $8.4 million, or 3 cents a share, a year earlier. Revenue fell 34% to $2.9 billion. Analysts surveyed by Thomson Financial were expecting, on average, a loss of 50 cents a share and revenue of $2.73 billion.

The company also said it ended 2007 with $1.1 billion in cash, up about $900 million from the third quarter, and above its target of $1 billion. Pulte said it targets a cash position of $2 billion to $2.2 billion at the end of 2008, with no outstandings on its revolving credit facility.

Banc of America Analyst Daniel Oppenheim reiterated his neutral rating, but raised his price target on the stock to $13 from $9.50, based on Pulte's improved liquidity position. He also narrowed his 2008 loss estimate to $2.40 a share from $2.90 a share.

Tomi Kilgore
tk1
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