Lennar price target raised to $160 from $145 at RBC Capital

RBC Capital raised the firm’s price target on Lennar to $160 from $145 and keeps an Underperform rating on the shares after its Q3 earnings beat. The company’s results, outlook, and commentary suggest that despite the industry’s and investors’ enthusiasm, significant incentives are still needed to drive targeted demand levels at this time, which creates continued gross margin risk even as new guide should better level-set the near-term expectations, the analyst tells investors in a research note. Lennar’s asset light transition continues to progress well, but the positives on the stock are “priced in”, the firm added.