Updated Aug 6 at 2:35pm ET.
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Truist Financial lowered its price target for Lennar to $80, which is slightly below where the stock is currently trading. This adjustment suggests a more cautious outlook on the homebuilder's near-term growth potential.
While the target is lower, it does not change the core story for the company. Lennar is still focused on moving toward an asset-light model, where it owns less land and generates more cash. For long-term owners, the main things to watch remain how many homes the company delivers and whether it can keep its profit margins steady while interest rates stay high.
Source: Truist Financial
Analysts at Argus Research reduced their price target for Lennar to $108. Even with this cut, the new target is still significantly higher than the current stock price, suggesting the firm still sees plenty of room for the stock to grow.
This change likely reflects the reality of a housing market where high mortgage rates are making it harder for people to buy homes. Lennar has been using incentives, like paying down a buyer's interest rate, to keep sales moving. While these incentives help sell homes, they also leave the company with less profit on each sale.
Source: Argus Research
Analysts recently lowered their price targets for Lennar in a mid-June flurry of activity. While 23 of 50 analysts still rate the stock a buy, the average target of $85 is essentially equal to the current price.
Lennar has a mixed record lately, missing analyst targets in five of the last eight quarters. It suggests the business is getting harder to predict as the housing market shifts.
| Expectation | |
|---|---|
| EPS | $1.31 |
| Revenue | $8.32B |