Lennar (LEN) Investors Overly Focused on Interest Rates, Says Goldman
Following positive Q2 results yesterday, Goldman Sachs maintained a Neutral rating on Lennar (NYSE: LEN) with a modified price target of $37.50 (from $36.00). Analyst Eli Hackel thinks investors are overly focused on interest rates.
"We believe investors are overly focused on the recent rise in rates and that a stronger economy is more important to housing then interest rates at this point. However, it may take time for sentiment to calm and for investor focus to revert back to fundamentals," said Hackel.
"We consider that Lennar's results were solid and that the company is
benefiting from its strong land investments. Going forward, we expect
Lennar to show increased community count growth, which should help it
meet the increasing need for housing," added the analyst.
Goldman adjusted 2013/2014/2015 EPS estimates to $1.72/$2.55/$3.59 from $1.57/$2.36/$3.27.
For an analyst ratings summary and ratings history on Lennar (NYSE: LEN) click here. For more ratings news on Lennar click here.
Shares of Lennar closed at $35.23 yesterday, with a 52 week range of $25.79-$44.40.
"We believe investors are overly focused on the recent rise in rates and that a stronger economy is more important to housing then interest rates at this point. However, it may take time for sentiment to calm and for investor focus to revert back to fundamentals," said Hackel.
"We consider that Lennar's results were solid and that the company is
benefiting from its strong land investments. Going forward, we expect
Lennar to show increased community count growth, which should help it
meet the increasing need for housing," added the analyst.
Goldman adjusted 2013/2014/2015 EPS estimates to $1.72/$2.55/$3.59 from $1.57/$2.36/$3.27.
For an analyst ratings summary and ratings history on Lennar (NYSE: LEN) click here. For more ratings news on Lennar click here.
Shares of Lennar closed at $35.23 yesterday, with a 52 week range of $25.79-$44.40.