RBC Capital analyst Mike Dahl raised his price target on Lennar (LEN) to $63 and kept his Outperform rating after its Q3 earnings beat and strong Q4 guide as well as "decidedly more positive" tone by its management on the call. The analyst notes that in spite of the macro uncertainty, the housing demand is "clearly" stronger amid improving affordability and healthy employment backdrop. Dahl anticipates a positive inflection in forward earnings estimates for Lennar, allowing the stock to narrow its valuation gap relative to D.R. Horton (DHI) and PulteGroup (PHM).

Zelman upgraded PulteGroup to Outperform from Neutral.

BTIG analyst Carl Reichardt raised the firm's price target on PulteGroup to $133 from $122 and keeps a Buy rating on the shares after its Q1 earnings beat. The outperformance was driven by delivery volume, gross margin, financial services income and a lower tax rate, though these were partially offset by lower average selling prices, SG&A ex-the benefit and land sales profit, the analyst tells investors in a research note. BTIG maintains that PulteGroup's high relative returns, conservative balance sheet, balanced product mix and scale advantages over many smaller peers are underappreciated.