Keefe Bruyette analyst Jade Rahmani raised the firm’s price target on Lennar to $230 from $183 and keeps an Outperform rating on the shares. The firm recommends investors overweight Lennar driven by the potential $6B-$8B land spinoff, which the firm sees as a “game changer.” The land spin will improve Lennar’s returns due to 20% accretion to its multiple to 2.6-times, matching large caps, and 12%-15% appreciation on sum of the parts assuming the land company trades at 1.6-times, the analyst tells investors in a research note.
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