Ticonderoga Downgrades Lennar (LEN) to Neutral; Homebuilding Results Limit Valuation Expansion
Tweet
Share
E-mailGet Alerts LEN Hot Sheet
Price: $87.30 +2.78%
Rating Summary:
13 Buy, 14 Hold, 9 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 16
Rating Summary:
13 Buy, 14 Hold, 9 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 16
Join SI Premium – FREE
Ticonderoga downgraded Lennar (NYSE: LEN) from Buy to Neutral.
Ticonderoga analyst says, "We believe LEN has hit somewhat of a wall with its Homebuilding operations, while its Rialto segment is producing stellar results. LEN trades at a moderate premium valuation to the group, which is warranted. Unfortunately, we struggle awarding LEN a higher relative valuation until its Homebuilding operations once again outperforms its peers—something we do not expect this year. We don’t believe LEN’s equity underperforms the group, but instead just lacks the catalyst to outperform and expand its valuation premium."
"We are lowering our EPS estimates for 2011 and 2012, driven by lower Homebuilding income. Our estimates are now $0.67 and $1.08, respectively, down from $0.71 and $1.26."
For more ratings news on Lennar click here and for the rating history of Lennar click here.
Shares of Lennar closed at $19.07 yesterday.
Ticonderoga analyst says, "We believe LEN has hit somewhat of a wall with its Homebuilding operations, while its Rialto segment is producing stellar results. LEN trades at a moderate premium valuation to the group, which is warranted. Unfortunately, we struggle awarding LEN a higher relative valuation until its Homebuilding operations once again outperforms its peers—something we do not expect this year. We don’t believe LEN’s equity underperforms the group, but instead just lacks the catalyst to outperform and expand its valuation premium."
"We are lowering our EPS estimates for 2011 and 2012, driven by lower Homebuilding income. Our estimates are now $0.67 and $1.08, respectively, down from $0.71 and $1.26."
For more ratings news on Lennar click here and for the rating history of Lennar click here.
Shares of Lennar closed at $19.07 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Downgrades Core Natural Resources (CNR) to Neutral
- Bernstein SocGen Group Upgrades Analog Devices (ADI) to Outperform
- JPMorgan Downgrades Cogent Communications (CCOI) to Underweight
Create E-mail Alert Related Categories
DowngradesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
