Lennar downgraded to Underperform from Sector Perform at RBC Capital

RBC Capital analyst Michael Dahl downgraded Lennar to Underperform from Sector Perform with a price target of $76, down from $79. Demand pressure for the U.S. homebuilders will be "deeper for longer" with home prices falling through 2023 and a slow recovery likely in 2024, Dahl tells investors in a research note. Downside risks include a "disappointing" spring selling season, weaker margins or impairments, pricing power or inflation headwinds, a recession, and rates remaining elevated for longer or moving higher again, the analyst writes. He wants to see a pullback in shares and visibility toward a fundamental inflection before becoming more positive.