RBC Capital raised the firm’s price target on Lennar (LEN) to $106 from $98 but keeps a Sector Perform rating on the shares after its Q3 earnings miss. The firm is modeling weaker absorption, deliveries, and margins as the management moderates its volume focus amid persistently weak demand, the analyst tells investors in a research note. Weak gross margins, elevated inventories, and lack of a stronger demand response to incremental incentives has driven the management to slow or pause spec starts – a shift that was described as taking a breather but could still be an important first step to the potential bottoming of margins, RBC added.
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Read More on LEN:
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