Lennar downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Sam Reid downgraded Lennar to Equal Weight from Overweight with a price target of $190, down from $205. Lennar is favorably positioned in homebuilding but its near-term setup is “complicated by a few idiosyncratic dynamics that can no longer be ignored,” the analyst tells investors in a research note. The firm believes Lennar’s planned pivot to highly affordable, value-engineered product in select Florida and Texas markets is underperforming expectations, resulting in unplanned discounting to drive volumes. This could have negative implications for fiscal 2025, contends Wells.