RBC Capital upgraded Lennar (LEN) to Sector Perform from Underperform with an unchanged price target of $130. The upgrade is valuation-based following the stock’s significant recent decline and reset to investor expectations, the analyst tells investors in a research note. RBC expects continued affordability challenges to reverberate across the homebuilders group amid the “higher-for-longer” rates backdrop. That said, investor sentiment has shifted meaningfully more negative over the past several months, better balancing risk/rewards, contends the firm.
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