KBW Lowers Lennar Price Target, Cites Margin Pressure and Rising Expenses

Lennar Corporation (NYSE:LEN) ranks among the best cyclical stocks to buy now. On June 20, Keefe, Bruyette & Woods maintained its Market Perform rating on Lennar Corporation (NYSE:LEN) but reduced its price target to $114 from $128.

KBW Lowers Lennar Price Target, Cites Margin Pressure and Rising Expenses

When compared to earlier predictions of 18.5%, the research firm’s 2025–2026 earnings per share estimates were cut by 17% due to lower predicted gross margins of 17.7–18.0%. Additionally, selling, general, and administrative expenses increased from 7.7% to 8.5%, according to KBW.

While Lennar Corporation (NYSE:LEN) enjoys the advantages of low financial leverage and operating scale, KBW also pointed out that the current housing market is still “challenged by stretched affordability, declining consumer confidence, and increased supply in key areas.”

Based in Miami-Dade County, Florida, Lennar Corporation (NYSE:LEN) is an American home construction company. Its homebuilding activities include buying, developing, and selling residential land as well as building and selling single-family attached and detached homes.

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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.