
Lennar (LEN) Stock Forecast & Price Target
Lennar (LEN) Analyst Ratings
Bulls say
Lennar is projected to achieve a 5% year-over-year growth in unit closings for FY27, supported by a gross margin expectation of 17.8%, reflecting robust operational performance despite a slight decrease from previous estimates. The recent decline in mortgage rates has positively influenced customer traffic in F4Q25, indicating a potential increase in demand for home purchases. Additionally, the company has implemented higher incentives, which have risen to 14.3% in F3Q25, suggesting a strategic approach to maintain sales momentum in a competitive market.
Bears say
Lennar's financial outlook reflects a declining gross margin, traditionally reducing by 100 basis points from the fourth quarter of the previous year to the first quarter of the next year, which indicates potential challenges in maintaining pricing power. Additionally, the company's average backlog price has seen a significant decrease from $462,000 in the fourth quarter of FY24 to $393,000 in the third quarter of FY25, highlighting a weakening demand or pricing environment for its homes. Consequently, earnings per share estimates for FY26 and FY27 have been revised downward to $8.47 and $9.75, respectively, alongside a reduction in expected revenue from $36 billion to $35 billion, indicating an overall cautious outlook on future performance.
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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