PulteGroup (NYSE:PHM) shares rose more than 4% yesterday despite the company’s reported Q3 results, with EPS of $2.69 coming in worse than the Street estimate of $2.76. Revenue was $3.94 billion, missing the Street estimate of $4.05 billion.

Analysts at Wedbush lowered their price target on the company’s shares to $47 from $54 following the results announcement. According to the analysts, the company is ramping spec home production in the Centex nameplate to meet the current demand for entry-level, quick-move homes. As the company gets more of the spec homes started and available for sale, that could be a tailwind for sales and earnings into mid-2023.

Near term, the analysts believe the 45% decline in move-up orders during Q3 and the 31% drop in active adult orders suggest a more conservative earnings outlook versus their prior estimates.