Lennar price target lowered to $130 from $160 at RBC Capital

RBC Capital lowered the firm’s price target on Lennar (LEN) to $130 from $160 and keeps an Underperform rating on the shares after its Q4 earnings miss and below-consensus guidance. The firm warns that material gross margin improvement for Lennar will remain elusive given “higher for longer” interest rates and the management remaining steadfast in its focus on aggressive volume targets using gross margins as a lever, the analyst tells investors in a research note. RBC also notes the potential for some investors to take profits on negative Lennar views and shift sights to other large cap builders.