
Lennar (LEN) Stock Forecast & Price Target
Lennar (LEN) Analyst Ratings
Bulls say
Lennar's stock exhibits a positive outlook due to its improved valuation post-MRP spin-off, rising from 1.4x to 1.72x, positioning it competitively against peers like D.R. Horton and PulteGroup. The company is anticipated to see orders growth of 3-7% and deliveries growth of 5-6%, along with a stable gross margin of approximately 20%, reflecting strong operational efficiency. Additionally, Lennar's well-established scale, diverse geographic presence, and low financial leverage support its long-term growth potential, further enhanced by the expected improvements in return on equity from strategic initiatives such as the Millrose spin-off.
Bears say
The analysis highlights a concerning trend for Lennar, with a projected year-over-year decline in orders of 2%, reflecting a slowdown in housing demand amid elevated interest rates and high home prices. Additionally, expected sales absorption rates are anticipated to drop by 17% year-over-year, further indicating weakening demand dynamics in the homebuilding sector. Furthermore, the company's guidance suggests a notable reduction in gross margins, projected at 19.1%, which is significantly lower than previous figures, thereby presenting challenges for profitability in the near term.
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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