As previously reported, Wolfe Research downgraded Lennar (LEN) to Peer Perform from Outperform and removed the firm’s previous $155 price target While the firm continues applauding Lennar’s asset light transition, it believes the recent spike in rates reinforces homebuyer affordability challenges and weighs on the company’s gross margin relative to peers given the company’s “aggressiveness in meeting the market with price,” the analyst tells investors. The firm forecasts Lennar’s 2025 gross margin declines 205 basis points to 20.2%, which would be among the largest year-over-year declines in the analyst’s coverage universe.
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Read More on LEN:
- Lennar downgraded to Peer Perform from Outperform at Wolfe Research
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