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In a challenging economic environment, Lennar Corporation (NYSE:LEN)’s stock has reached a 52-week low, dipping to $111.26. With a market capitalization of $29.1 billion and trading at a P/E ratio of 7.61, the prominent home construction company has faced headwinds over the past year, with a six-month decline of -32.6%. This downturn mirrors broader market trends, as investors weigh concerns over interest rate hikes and a potential slowdown in the housing market. Lennar’s performance, while currently at a low ebb, maintains a "GREAT" financial health score according to InvestingPro analysis, and appears undervalued based on Fair Value estimates. For investors seeking deeper insights, InvestingPro offers 12 additional investment tips and a comprehensive Pro Research Report for Lennar, part of their coverage of 1,400+ top US stocks.
In other recent news, Lennar Corporation has been the subject of multiple analyst revisions following its latest financial disclosures. Lennar’s first-quarter earnings for 2025 exceeded expectations, reporting $1.96 per share, which surpassed both BTIG’s estimate of $1.80 and the consensus estimate of $1.71. Despite this, several firms have revised their price targets for Lennar, citing concerns over future margins and market conditions. JMP Securities cut its price target to $150, while Keefe, Bruyette & Woods lowered it to $128, and Citi reduced it to $127, maintaining a Neutral rating.
RBC Capital Markets also adjusted its outlook, decreasing the price target to $122, reflecting a cautious stance on Lennar’s future performance amid weaker demand and profit margins. Analysts have noted Lennar’s strategic use of incentives to sustain order volumes, albeit at the cost of reduced gross margins. Keefe Bruyette highlighted a decrease in Lennar’s projected gross margin range to 18.0-18.5%, down from previous estimates.
Additionally, Lennar’s management has reiterated its full-year 2025 volume guidance of 86,000 to 88,000 deliveries, indicating a potential for organic growth despite current challenges. Analysts from BTIG and RBC Capital have revised their earnings forecasts for Lennar, with BTIG adjusting its FY25 EPS estimate downward to $9.50. Analysts have pointed out that Lennar’s focus on price adjustments and incentives is aimed at navigating the softer demand environment.
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