Keefe downgrades Lennar on valuation, risks to estimates

Keefe Bruyette downgraded Lennar (LEN) to Market Perform from Outperform with a price target of $141, down from $152. Lennar’s valuation is now near parity to its large-cap peers and there are potential downside risks to estimates, the analyst tells investors in a research note. Keefe expects a “choppy” spring selling season and sees growing risks to the company’s gross margin due to the challenging macro environment and uncertainty around the spin-off. As such, it believes a more cautious stance on the shares is warranted. The firm awaits a better entry point.