Lennar Analysts Divided As Stock Continues Slide Following Soft Q3 Report

Lennar Corp shares fell 1% in early premarket trading on Monday, extending Friday's 7.3% slide following the company's weak quarterly results.

Still, analysts gave differing views post-earnings, while the retail sentiment for the stock remained in the 'extremely bullish' zone, unchanged since Friday.

JPMorgan lowered its price target on the stock to $94 from $97, citing the weak results and a soft delivery outlook for the ongoing quarter. Bank of America slashed its target by $2 to $133. Both the investment research firms maintained their 'Neutral' ratings.

BofA said the risk-reward for the stock now seemed in balance.

On Thursday, Lennar reported third-quarter revenue of $591 million and $2 per share adjusted profit, missing analysts' expectations on both counts.

The housing market has been under significant strain over the past year, as high inflation and economic uncertainty kept many buyers on the sidelines. To sustain sales, homebuilders have leaned on steep discounts and promotional offers.

Although the Fed's rate cut last week would ease mortgage rates and boost home sales, major housing stocks have already rallied in anticipation in the weeks prior.

On the other hand, UBS raised its price target on LEN stock to $161 from $146, while Citi bumped it to $135 from $116. They kept their 'Buy' and 'Neutral' recommendations, respectively.

UBS argued that Lennar is nearing the end of its negative earnings revision cycle, with opportunities for improved volume and margins in 2026. Citi cited a better outlook on the housing sector, following the rate cut, for its decision.

Currently, 16 of the 19 analysts covering the homebuilder have a 'Hold' rating on its stock, while three rate it 'Buy' or higher. Their average price target is $125.50, about $2 below the stock's last close.

Lennar shares are down 3.6% year-to-date.

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