KeyBanc Downgrades Lennar - Read Why - Lennar (NYSE:LEN)

KeyBanc analyst Kenneth Zener downgraded Lennar Corp LEN to Underweight from Sector Weight with an $86 price target, implying a 13% downside.
The analyst thinks builders' operational success cannot offset cyclical tailwinds ebbing in time.
Lennar's "low" P/E multiples partly discount "peak" margins, with book value at 1.7-times now in line with historic levels, Zener noted.
The analyst also added that past cycles saw EPS fall before multiples P/E rose.
Price Action: LEN shares are trading lower by 2.23% at $99.05 on the last check Wednesday.