PulteGroup's (PHM) shares price could rise due to a favorable customer mix, a reduced impact of President Trump's tariffs on mortgage rates, and expectations of loosening mortgage credit availability this year, Wedbush Securities said Friday.

The brokerage raised its Q4 EPS estimate to $3.29, above the consensus of $3.28, citing stronger-than-expected home closings, with an estimated 8,200 closings for the quarter, up from 8,000 previously.

Wedbush increased its earnings forecast for fiscal 2025 to $14.58 from $14.39, and for fiscal 2026 to $16.29 from $15.97, citing positive demand trends.

The brokerage firm believes Pulte's customer mix, which includes 25% of demand from active adult buyers, 50% from move-up buyers, and 25% from entry-level buyers, positions the company well to benefit from current market conditions.

It said the move-up and active adult segments, which are less sensitive to interest rate fluctuations, were more active last year than expected. If mortgage rate volatility persists this year, these buyer groups may show more resilient demand.

Wedbush raised PulteGroup's rating to 'outperform' from 'neutral,' with a price target of $135.