Homebuilder Rivals Toll Brothers And PulteGroup On Diverging Pathways

Homebuilder Toll Brothers was upgraded to overweight from equal-weight at Morgan Stanley on Tuesday, while rival PulteGroup was downgraded to underweight from equal-weight. Analyst Haendel St. Juste also raised his price target on Lennar Corp. to $61 from $55. He said the market does not appreciate the potential of Toll Brothers, while it is overvaluing PulteGroup's deferred tax assets. Overall, Haendel expects the housing market's growth to decelerate slightly year-over-year in 2016. Shares of Toll Brothers climbed 0.7% to $37.34 in premarket trade, while those of PulteGroup fell 1.7% to $19.75. Lennar's stock was inactive in premarket trade