KeyBanc Raises Lennar's Price Target On Housing Market Optimism

KeyBanc boosted its price target for Lennar Corporation LEN, the nation’s No. 2 homebuilder, on optimism around the improving housing market driven by interest rates.

The Analyst

KeyBanc’s Kenneth Zener raised his target price on Lennar from $50 to $57 and maintained an Overweight rating on the stock.

The Thesis

The bullishness comes despite a first-quarter earnings miss for Lennar, but Zener said the optimism reflects the likelihood of improving momentum for the company in the second half of 2019.

Several signs point to strength in the homebuilding industry, with low unemployment, along with an easing in mortgage rates with the Fed having paused interest rate hikes. Zener noted Lennar offered favorable 2019 commentary for stronger orders.

Price Action

Lennar shares were coming back down on Thursday after rising more than 4 percent Wednesday. Lennar was trading down 2.5 percent to $50.41 per share at time of publication.

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