Lennar stock price target raised to $140 from $130 at Citizens JMP

Investing.com - Citizens JMP analyst raised the price target on Lennar (NYSE:LEN) to $140.00 from $130.00 on Monday, while maintaining a Market Outperform rating on the homebuilder’s stock. This target aligns with InvestingPro’s analysis, which suggests Lennar is currently undervalued, trading at a P/E ratio of 12.6x.

The price target increase follows Lennar’s fiscal third-quarter 2025 earnings report, where the company posted normalized earnings per share of $2.00, excluding gains from technology investments. This result fell short of Citizens’ estimate of $2.11 and the consensus expectation of $2.10. Despite the miss, InvestingPro data shows Lennar maintains a GOOD financial health score, with strong liquidity evidenced by a current ratio of 14.3x.

The homebuilder’s core results reflected lower-than-expected deliveries and gross margin, with the business facing pressure from prohibitive affordability levels for consumers. These conditions prompted management to slow its pace of housing starts.

Based on the results, guidance, and management commentary, Citizens JMP has incrementally lowered its estimates for Lennar for fiscal years 2025 and 2026. The price target of $140 represents 1.5 times forward twelve-month book value.

Despite near-term challenges, Citizens JMP maintained its Market Outperform rating, citing expectations that the beginning of a declining interest rate cycle should create demand tailwinds for the housing industry. The company’s resilience is further demonstrated by its 48-year track record of consistent dividend payments, currently yielding 1.57%.

In other recent news, Lennar Corporation’s third-quarter earnings report revealed results that fell short of analysts’ expectations. The company reported earnings per share (EPS) of $2, which was below the forecasted $2.10, representing a 4.76% miss. Additionally, Lennar’s revenue came in at $8.8 billion, missing the expected $8.97 billion by 1.9%. These recent developments have caught the attention of investors and analysts alike. The shortfall in both earnings and revenue highlights challenges the company may be facing in achieving its financial targets. While the stock price reacted to the news, the focus remains on how Lennar will address these financial misses. Investors will be keenly observing any strategic changes or guidance updates from the company in the coming quarters.

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