JPMorgan analyst Michael Rehaut upgraded PulteGroup to Neutral from Underweight with an unchanged price target of $24. The company's gross margin downside risk is now better understood by the Street, Rehaut tells investors in a research note. Further, PulteGroup's price-to-earnings valuation is one of the least expensive among the larger-cap builders, says the analyst. He believes a Neutral rating is now appropriate.

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.