Goldman Sachs (NYSE:GS) has yanked PulteGroup (NYSE:PHM) from its conviction buy list today.
Goldman maintained its buy rating on the stock despite removing it from its cream-of-the-crop list, although it cuts its price target to $6 from $10 per share.
The firm said it sees housing demand remaining flat through 2012.
PulteGroup shares are trading down over 7% on the news.
The iShares Dow Jones U.S. Home Construction Index Fund (AMEX:ITB) is trading down over 3.2% Tuesday, with top stocks NVR (NYSE:NVR), DR Horton (NYSE:DHI), Toll Brothers, Lennar (NYSE:LEN) and PulteGroup.
The SPDR S&P Homebuilders ETF (AMEX:XHB), with a broader range of home-improvement related stocks in addition to the homebuilders, is trading down over 3.1% Tuesday.
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