Lennar price target raised to $177 from $170 at BTIG

BTIG analyst Carl Reichardt raised the firm’s price target on Lennar to $177 from $170 and keeps a Buy rating on the shares following quarterly results. While the quarter was strong and the guide was relatively in line, shares fell 7.6% on the day on, in the firm’s view, a 10 bps move up in 10-year Treasury rates, management’s comments that a “little more” debt is showing up in mortgage apps, and some confusion around Lennar’s newly announced plans to spin some land assets into a new taxable vehicle. BTIG said in a research note on Friday that it feels this combination of factors obfuscated not only a good quarter, but other important aspects of the Lennar story, such as positive moves to improve product consistency and efficiency, which should be volume- and margin-accretive in the long run, an even firmer dedication to share repurchases, and a commitment to maintain one of the industry’s fastest top-line growth rates despite the company’s already significant relative size.