Lennar price target raised to $140 from $130 at Citizens JMP

Citizens JMP analyst Aaron Hecht raised the firm’s price target on Lennar (LEN) to $140 from $130 and keeps an Outperform rating on the shares. Lennar’s core results reflected lower-than-expected deliveries and gross margin, and the business has remained pressured by prohibitive affordability levels for consumers, which caused management to slow its starts pace, the analyst tells investors in a research note. Citizens believes book value multiples should trade above the supported ROE as we move into an earnings growth cycle for the industry, occurring in conjunction with better affordability for homebuyers.