BTIG analyst Carl Reichardt raised his price target for Lennar to $78 from $75 following the company's quarterly results, saying this was another robust quarter that again demonstrated Lennar's transition to a more efficient, turns-oriented homebuilder with a sharper focus on returning capital to shareholders while still producing solid growth. The analyst continues to believe Lennar's valuation will expand as ROE improves and maintains a Buy rating.
UBS analyst John Lovallo initiated coverage of Lennar with a Buy rating and $145 price target. The analyst said that builder stocks could "spring" this Spring, with average homebuilder P/E multiple already appearing to reflect downward revisions to estimates, rising interest rates, and a potential sharp decline in housing activity. Lovallo added that he does not expect a material deterioration in volume as pent-up demand is real and continues to be unleashed by COVID impacts.