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Lennar (LEN) Remains Top Homebuilder Idea at Goldman Sachs

December 31, 2014 1:41 PM EST
Get Alerts LEN Hot Sheet
Price: $171.98 +2.07%

Rating Summary:
    24 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Goldman Sachs analyst Eli Hackel said CL-Buy -rated Lennar (NYSE: LEN) remains his top homebuilding idea. The report noted Florida and Texas showed the most momentum recently, and while industry data was softer, long-term trends are intact. He also noted little impact from oil on Houston housing.

"Florida and Texas were the top states, showing up the most in the top ten (thrice each). Naples, FL, Houston, TX, and Dallas, TX, took the top three positions in Sep-Nov," said Hackel. "We note that so far there are no signs that lower oil prices are impacting housing in Houston, but we remain focused on early indicators."

"In November, yoy sales were up for existing and pending home sales but declined for new homes on a seasonally adjusted basis. We view increased pending home sales as a positive forward looking indicator relative to softer existing and new home sales. SF prices and inventories were up yoy for both new and existing homes. Mortgage rates continue to be near their 12-month lows going into December, after a slight increase in November. Jobs growth continued with a 321K increase in total nonfarm payroll in November," continued the analyst.

"We maintain our long-term view that companies with attractive geographic exposures should be outperformers combined with strong capital allocation and timing of land purchases. We note KBH (NYSE: KBH), MTH (NYSE: MTH), and TMHC (NYSE: TMHC) had the highest momentum from September to November. LEN (CL-Buy) remains our top homebuilder idea," he added.

For an analyst ratings summary and ratings history on Lennar click here. For more ratings news on Lennar click here.

Shares of Lennar closed at $44.44 yesterday.



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