
Lennar (LEN) Stock Forecast & Price Target
Lennar (LEN) Analyst Ratings
Bulls say
Lennar's valuation has shown improvement, rising to 1.72x following the MRP spin-off, positioning it competitively against peers like D.R. Horton and PulteGroup. The company anticipates positive growth metrics with order growth projected at 3-7% and deliveries between 5-6%, alongside stable gross margins. Additionally, Lennar is considered well-positioned due to its scale, geographic footprint, low financial leverage, and potential upside in return on equity from capital efficiency initiatives, despite facing challenges in the current housing environment.
Bears say
Lennar is expected to experience a year-over-year decline in home orders for F1Q25, projecting 17.8k homes, which aligns with consensus estimates, but reflects a slowing trend in sales absorption at 4.1 orders per month—17% lower than the previous year. The company's guidance indicates a reduction in gross margins to 19.0-19.25%, down from 22.1% in Q4 and 21.8% year-over-year, compounded by challenging market conditions including elevated interest rates and high home prices that affect affordability. Overall, with declining order growth expectations and soft demand trends reported by competitors, Lennar faces significant risks to its profit margins and long-term investment returns in the current housing environment.
This aggregate rating is based on analysts' research of Lennar and is not a guaranteed prediction by Public.com or investment advice.
Lennar (LEN) Analyst Forecast & Price Prediction
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