As previously reported, Seaport Global analyst Mark Weintraub downgraded PulteGroup (PHM) to Neutral from Buy as he is getting a bit more cautious on the homebuilders given that he believes strong orders today will likely bring along challenges tomorrow as more building activity will put pressures on costs. Weintruab, who thinks it could become harder for homebuilding stocks in general to trade higher as investors grow concerned about risk to margins, also downgraded KB Home (KBH) to Neutral from Buy this morning.

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.