BTIG lowers Lennar PT on rising land banking costs
BUZZ-BTIG lowers Lennar PT on rising land banking costs ** BTIG cuts price target on homebuilder Lennar Corp LEN.N to $73 from $77, maintains rating at "sell"
** New PT implies a downside of 19.3% from the stock's last close
** Says the cost of Lennar's shift to land banking that is yet to impact gross margin is about ~130 basis points, up from around ~50 basis points earlier
** Q2 will be a key test as higher land banking costs, elevated spec inventory, and weaker investor demand could limit operating leverage despite strong peer demand trends- BTIG
** BTIG forecasts 2026 EPS at $5.99/share from $6.25 prior
** One of 20 brokerages rate the stock "buy" or higher, eleven "hold" and eight "sell" or lower; their median PT is $89.50- data compiled by LSEG
** As of last close, stock had fallen almost 12% YTD
(Reporting by Apratim Sarkar in Bengaluru)
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