Cost PressuresHigher incentives to maintain sales pace have pressured Lennar's gross margin outlook.
Market ConditionsDespite lower mortgage rates, Lennar has not yet seen stronger sales, suggesting a continued softening in the housing market.
Valuation ConcernsLEN’s relative valuation is viewed as somewhat expensive, given the outlook for below average gross margins, operating margins, and ROE in FY25/FY26.