
Lennar (LEN) Stock Forecast & Price Target
Lennar (LEN) Analyst Ratings
Bulls say
Lennar's recent completion of the MRP spin-off has resulted in a valuation increase to 1.72x, which is competitive compared to peers, indicating a robust repositioning of the company's financial standing. The company has a strong potential to generate significant free cash flow as it continues its land-light transformation, enhancing its return on equity and leveraging its strong balance sheet. Additionally, the improved asset turnover and net leverage suggest a promising trajectory for capital returns, positioning Lennar favorably among its peers in the homebuilding industry.
Bears say
Lennar is forecasted to experience a year-over-year decline in orders for F1Q25, with expected orders of 17.8k homes, reflecting a decrease in sales absorption rates to 4.1 orders per month, which is 17% lower than the previous year. The company anticipates a gross margin between 19.0% and 19.25%, significantly down from 22.1% in the previous quarter and 21.8% year-over-year, highlighting deteriorating profitability amid a challenging homebuilding environment characterized by elevated interest rates and high home prices. Additionally, the overall outlook for the housing market remains uncertain, further complicating Lennar's ability to generate sustainable growth and maintain favorable investment returns.
This aggregate rating is based on analysts' research of Lennar and is not a guaranteed prediction by Public.com or investment advice.
Lennar (LEN) Analyst Forecast & Price Prediction
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