11:42 AM EDT, 07/15/2025 (MT Newswires) -- PulteGroup's ( PHM ) estimates have been lowered ahead of Q2 earnings as the company faces volume pressures while emphasizing pricing over construction pace in a softening housing market, Oppenheimer said in a note Tuesday.

The firm said the recent rally in PulteGroup ( PHM ) shares presents near-term risk, as housing demand appears to have weakened since the first quarter and 2025 Street estimates remain too high.

Oppenheimer reduced its 2025 EPS forecast to $11.33 from $11.49 previously and expects total revenue of about $17.19 billion for the year, slightly above the consensus estimate of $17.16 billion, as pricing helps offset weaker volume trends. For the upcoming second quarter, the firm projects earnings of $2.89 per share, just below the Street forecast of $2.96.

The report flagged company-specific risks, including the discretionary nature of the active adult buyer segment and significant exposure to Florida, a market with some of the weakest housing fundamentals in the country.

Oppenheimer reiterated an outperform rating and raised its price target to $132 from $125, citing the company's sector-leading return on equity, strong leverage profile, and active share repurchases.

Shares of PulteGroup ( PHM ) were down more than 2% in recent Tuesday trading.

Price: 110.47, Change: -2.38, Percent Change: -2.10