Lennar price target raised to $110 from $100 at KeyBanc

KeyBanc analyst Kenneth Zener raised the firm’s price target on Lennar to $110 from $100 and keeps an Overweight rating on the shares. The analyst believes Lennar’s focus on asset turns amid reset price "optimizes its return on inventory and cash- flow," and expects the company’s already negative 2% net leverage to fall further amid lower inventory units, with ‘trough’ Q1 2023 gross margin comments assuming fixed-cost absorption is not offset by further market pressure. Zener raised his price target as he thinks "lower leverage warrants a higher book/earnings valuation."