Lennar price target lowered to $164 from $183 at UBS

UBS lowered the firm’s price target on Lennar (LEN) to $164 from $183 and keeps a Buy rating on the shares. The firm cut estimates following the company’s fiscal Q1 report. This is due to lower gross margin assumptions, as Lennar maintains elevated incentive levels to support its even-flow production model, the analyst tells investors in a research note. UBS says that despite disappointing gross margin outlook for Lennar and its downwardly revised estimates, it maintains a Buy rating as it believes the company’s operating strategy will “bear fruit over time” and that expectations have been reset to reflect the near-term challenges.