UPDATE: JPMorgan Downgrades Lennar (LEN) to Neutral
- Stocks waver as dollar eases, oil steadies on OPEC+ deal
- Musk Failed to Convince Twitter (TWTR) to Lower the Deal Price - Reports
- Citi Says Buy US and UK Equities, Sees 18% Upside in Global Equities to End-2023
- Dollar wavers with ECB minutes and Friday's U.S. jobs data in focus
- UBS Sees Over 25% Upside Potential in Apple Shares as iPhone Demand Remains Strong
JPMorgan analyst Michael Rehaut downgraded Lennar (NYSE: LEN) from Overweight to Neutral with a price target of $80.00 (from $83.00).
The analyst comments "We downgrade LEN to a Neutral rating relative to its peers from Overweight, as our Dec. 2022 price target represents upside potential roughly in-line with our universe average. We note that our price target’s multiple against our FY23E (we also add $10/share to reflect our estimate of the value of its proposed spin) is modestly below our target multiples for DHI and PHM, as while we estimate roughly in-line gross and operating margins for LEN in FY22 and FY23, at the same time, we estimate its ROE (post-spin) still trailing DHI/PHM by roughly 700-1,000 bps in FY22 and roughly 500-700 bps in FY23. Hence, we view our price target’s implied 2022E-end P/TB multiple of roughly 1.15x, which compares to DHI at roughly 1.45x and PHM at roughly 1.35x, as appropriate."
Shares of Lennar closed at $78.70 yesterday.
You May Also Be Interested In
- BMO Capital Downgrades Equity Residential (EQR) to Market Perform
- RPM International (RPM) PT Raised to $115 at BMO Capital
- Domain Holdings Australia Ltd. (DHG:AU) PT Lowered to AUD4 at UBS
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
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!