Lennar Corp. Stock Rating Lowered by Zacks (LEN)
Lennar Corp. (NYSE:LEN) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a report released on Monday, AnalystRatings.Net reports. They currently have a $38.00 target price on the stock. Zacks‘ price objective would suggest a potential upside of 5.97% from the stock’s previous close.
Zacks‘ analyst wrote, “We revert to a Neutral recommendation on Lennar from Outperform as we believe that the recent spike in interest rates is slightly slowing down the housing recovery. Lennar’s strong third-quarter results, on the back of strong momentum in the housing market, beat the Zacks Consensus Estimate for both earnings and revenues. Adjusted earnings of $0.54 per share grew 35% year over year driven by growth in both revenues and margins. However, even though homebuilding revenues grew 53% in the quarter, net order pace slowed down owing to the recent increase in interest/mortgage rates. Management is optimistic that the moderating sales pace is only temporary. The company is confident of seeing strong demand in future quarters as buyers adjust to the rising interest rates and return to the market, credit standards ease and supply remains limited. However, we prefer to remain on the sidelines until we see a rebound in order growth.”
Shares of Lennar Corp. (NYSE:LEN) traded down 1.23% on Monday, hitting $35.42. 1,924,387 shares of the company’s stock traded hands. Lennar Corp. has a 52 week low of $30.90 and a 52 week high of $44.40. The stock’s 50-day moving average is $33.70 and its 200-day moving average is $37.43. The company has a market cap of $6.836 billion and a price-to-earnings ratio of 18.12.
Lennar Corp. (NYSE:LEN) last released its earnings data on Tuesday, September 24th. The company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.09. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.56 billion. During the same quarter in the previous year, the company posted $0.40 earnings per share. The company’s revenue for the quarter was up 45.7% on a year-over-year basis. Analysts expect that Lennar Corp. will post $1.98 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at RBC Capital raised their price target on shares of Lennar Corp. (NYSE:LEN) from $36.00 to $40.00 in a research note to investors on Wednesday, September 25th. They now have an “outperform” rating on the stock. Separately, analysts at Barclays Capital reiterated a “buy” rating on shares of Lennar Corp. (NYSE:LEN) in a research note to investors on Wednesday, September 25th. They now have a $39.00 price target on the stock. Finally, analysts at Compass Point cut their price target on shares of Lennar Corp. (NYSE:LEN) from $39.00 to $38.00 in a research note to investors on Wednesday, September 25th. They now have a “neutral” rating on the stock. One analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and eleven have assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus target price of $41.31.
Lennar Corporation is a homebuilder and a provider of financial services and through its Rialto Investments (NYSE:LEN) segment, an investor, and manager of funds that invest in real estate assets.
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