Capital Goods Sector Review: Homebuilders Catch a Bid

PulteGroup, Inc. (NYSE:PHM): Embattled PulteGroup catches an upgrade from UBS to Buy from Neutral on valuation with a $8 price target – repping a healthy 83% upside potential.

The shares closed at $7.04, up $0.5, or 7.65%, on the day. Its market capitalization is $2.69 billion.

KB Home (NYSE:KBH): Stifel Nicolaus follows up a warning on homebuilders, advising investors to sell into recent strength, with a downgrade of KB Homes. KBH has been leveraging in anticipation of a housing recovery for five years, and the firm doesn’t see a recovery occurring soon enough or fast enough to make this rewarding. KBH’s FQ4 cash was $479M, well below $1.02B a year ago.

The shares closed at $7.14, up $0.37, or 5.47%, on the day. Its market capitalization is $550.73 million.

Beazer Homes USA, Inc. (NYSE:BZH): Beazer Homes spikes higher after it’s disclosed director and ex-CEO Brian Beazer bought 13K shares at prices at or near $2.03.

The shares closed at $2.74, up $0.14, or 5.38%, on the day. Its market capitalization is $207.00 million.

Spirit AeroSystems Hldgs (NYSE:SPR): Credit Suisse raises Spirit AeroSystems to outperform from neutral and its share-price target to $27 from $22, citing the assumption of positive free cash flow in 2012 and the “absence” of strike risk at Boeing, Spirit’s main customer. Credit Suisse also raises its 2012 and 2013 profit outlook for Spirit.

The shares closed at $22.15, up $0.94, or 4.43%, on the day. Its market capitalization is $3.16 billion.

CRH PLC (NYSE:CRH): Shares of CRH fell after the building-materials firm warned it won’t reach its earnings target because of weakness in its U.S. business and a strong euro. CRH also reported a 77% drop in H1 net profit to €18M.

The shares closed at $19.52, down $0.57, or 2.84%, on the day. Its market capitalization is $13.81 billion.