As previously reported, RBC Capital analyst Mike Dahl upgraded PulteGroup to Sector Perform and raised his price target to $33 from $29, saying its Q2 results were "strong" while the pullback in the stock price has made risk-reward "more balanced." The analyst says he was previously concerned by the company's premium relative valuation and its "high bar" for meeting its orders and gross margin targets, but Q2 orders grew 7% against expectations of 1% and the management exceeded his expectations by guiding "stable" gross margins for the second half of FY19. Dahl adds that the weaker guidance for closings may have driven the 8% stock price decline, but he also believes that the macro environment for PulteGroup is improving.