Oppenheimer analyst Tyler Batory reiterated a Perform rating on Lennar (NYSE: LEN).

The analyst commented: "Shares of LEN were down 446 bps (S&P 500 down 84 bps) yesterday post FY2Q25 earnings. We attribute the underperformance to higher than expected SG&A related to incremental technology investments and the continuation of its volume-focused strategy. Downbeat market commentary, while not a surprise, also didn't help. These factors offset some stability in gross margin (guide flat QoQ). We also think these are also more company than industry specific.

The technology investment likely pushes out when profit margins could bottom and adds additional uncertainty around the magnitude of reductions LEN is willing to accept. These are key sticking points keeping us on the sidelines. Reiterate Perform."

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Shares of Lennar closed at $104.61 yesterday.