Lennar downgraded to Neutral from Buy at Citi

Citi analyst Anthony Pettinari downgraded Lennar to Neutral from Buy with a price target of $164, down from $174. The analyst reduced estimates to reflect softening housing activity into the summer. The firm sees Lennar’s long-term positives from structural housing undersupply, an asset-light model and strong balance sheet as balanced by softening in housing fundamentals. Further, Citi sees limited near-term catalysts for the stock until 2025, with September rate cuts at least partially priced in. It finds Lennar’s valuation as fair at current levels.