BUZZ-Lennar falls as JP Morgan cuts to 'underweight'
Lennar's shares fell 2.4% premarket after JP Morgan downgraded its rating to "underweight" from "neutral" and cut the price target to $115 from $118, indicating a 13.6% downside. The downgrade is due to expected margin pressure from higher incentives and soft housing demand. Lennar's valuation is seen as stretched compared to peers. Meanwhile, JP Morgan raised D.R. Horton's price target to $136, citing strong operational strength.
Shares of U.S. homebuilder Lennar (LEN.N) down 2.4% at $130 premarket
JP Morgan downgrades rating to “underweight” from “neutral”, cuts PT to $115 from $118
New PT shows a downside of 13.6% from the stock’s last close
Brokerage expects margin pressure on co due to higher incentives and soft housing demand
Adds LEN’s valuation seen stretched compared to peers
JP Morgan remains cautious on homebuilders amid affordability challenges and slowing market momentum
However, JP Morgan lifts D.R. Horton PT to $136 from $130, citing strong operational strength
5 of 20 brokerages rate the stock “buy” or higher, 12 “hold” and 3 “sell” or lower; their median PT is $125- data compiled by LSEG
YTD, shares up 1%
