Lennar's Agile Strategy In Challenging Market Yields Growth: Analyst Boosts Price Target By 10%
Portfolio Pulse from Shivani Kumaresan
Raymond James analyst Buck Horne upgraded Lennar Corp's (LEN) price target from $150 to $165, maintaining an Outperform rating after the company reported F4Q23 core EPS of $5.17, beating estimates of $4.59. Despite challenges with high mortgage rates in 4Q, Lennar managed to generate 32% year-over-year new order growth by offering price reductions and other incentives. However, these incentives are expected to lead to lower 1Q24 gross margins. Lennar's strategy has allowed it to gain market share and is well-positioned for 2024 with a net debt-free balance sheet and a land-light pivot. LEN shares rose 1.14% to $148.91 following the news.
December 19, 2023 | 7:29 pm
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Lennar Corp's price target was raised to $165 by Raymond James, with an Outperform rating maintained after better-than-expected F4Q23 earnings. The company's strategic incentives to combat high mortgage rates resulted in significant order growth, but may affect 1Q24 margins.
The price target increase by a reputable analyst following strong earnings results is a positive signal for investors, suggesting confidence in the company's growth prospects. The strategic moves by Lennar to maintain demand in a challenging market are likely to be viewed favorably, although there is a note of caution regarding the impact on future margins. The share price increase on the last check further supports the positive short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100