Mixed Financial Performance and Pricing Pressures Lead to Hold Rating on Lennar

Citi analyst Anthony Pettinari has maintained their neutral stance on LEN stock, giving a Hold rating on June 11.

Anthony Pettinari has given his Hold rating due to a combination of factors influencing Lennar’s financial performance. The company’s recent earnings report showed a miss on earnings before taxes and adjusted earnings per share, although revenue was in line with expectations. Key metrics such as home closings and gross margins were roughly aligned with guidance, but average selling prices and SG&A leverage were weaker than anticipated.
Despite a rise in net orders, the figures were below consensus and at the lower end of guidance, with a notable decline in average selling prices. While the guidance for the next quarter’s net orders and average selling prices was softer, the gross margin guidance was not as negative as feared. However, the SG&A margin guidance was worse than expected. These mixed results and ongoing pricing pressures led Pettinari to maintain a Hold rating on Lennar’s stock.