Lennar price target lowered to $183 at UBS to reflect Millrose spin

UBS lowered the firm’s price target on Lennar (LEN) to $183 from $192 and keeps a Buy rating on the shares. The price target reduction reflects the spinoff of Millrose (MRP), the analyst tells investors in a research note. The firm’s forecasts assume a 20 basis point gross margin headwind in fiscal 2025 from land banking with Millrose, a 60bp headwind in FY26 and a 100bp headwind in FY27 and beyond, as Lennar ramps its deliveries towards 100% optioned land.