John Lovallo, an analyst from UBS, reiterated the Buy rating on Lennar. The associated price target is $161.00.
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John Lovallo has given his Buy rating due to a combination of factors that suggest a positive outlook for Lennar’s stock. The analyst has raised the price target from $146 to $161, reflecting confidence in the company’s future earnings potential, particularly as Lennar is nearing the end of a negative earnings revision cycle. This optimism is supported by signs of stabilization in industry demand and inventory levels, especially in key markets like Florida.
Furthermore, Lennar’s management has shown adaptability in its production strategy, which could lead to improved volume and margins in the coming years. Although the company’s recent financial results showed some softness in volume and margins, the overall market conditions and Lennar’s strategic positioning are expected to drive growth. With a valuation multiple that remains within historical ranges, Lovallo sees Lennar as a promising investment opportunity, warranting a Buy rating.
Lovallo covers the Consumer Cyclical sector, focusing on stocks such as DR Horton, Toll Brothers, and KB Home. According to TipRanks, Lovallo has an average return of 10.2% and a 60.47% success rate on recommended stocks.