JPMorgan Upgrades Lennar (LEN) to Overweight, Says Transformation Not Reflected in Valuation
- S&P 500 edges down on virus woes, slowing economy
- 'Becoming JP Morgan of the Future': Square (SQ) Dips on Deal to Acquire BNPL Afterpay For $29B in Stock, Benefits Outweigh High Price Says Analyst
- Oil falls over 3% on concerns over demand and OPEC supply boost
- ON Semiconductor (ON) Surges on Strong Q2 Results and Q3 Outlook
- Dollar wavers on dovish Fed tone, mixed economic outlook
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
JPMorgan analyst Michael Rehaut upgraded Lennar (NYSE: LEN) from Neutral to Overweight with a price target of $141.00 (from $115.00).
The analyst comments "We are upgrading LEN to Overweight from Neutral, as following its 2Q (Mayend) earnings and conference call, we view the stock as attractive relative to its peers and effectively not reflecting the company’s significant and ongoing business transformation. More specifically, at current levels, not only do we view LEN’s valuation as effectively not assigning much value to its proposed spin-off, but moreover, we expect the company to demonstrate further progress in its shift to an asset light model as well as, lastly, anticipate an increased level of returning cash to shareholders over time (i.e., share repurchase). Importantly, we highlight that the company reached its target of its land position being 50% optioned two quarters early, while it further noted that it does not view this number as an end goal. Moreover, we expect LEN to return more cash to shareholders over time, given the company’s strong cash flow generation and still fairly unlevered balance sheet (we estimate a post-spin pro forma net debt to capital of roughly 20%)."
Shares of Lennar closed at $94.65 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bloomin Brands (BLMN) Gains on Upgrade to 'Buy' at Deutsche Bank After 'Pretty Outstanding Q2 Results'
- Oppenheimer Starts Processa Pharmaceuticals (PCSA) at Outperform
- Workiva (WK) PT Raised to $145 at Stifel
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesJPMorgan, Earnings
Sign 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!