Lennar edges lower after Raymond James downgrades rating

Lennar

22/09/2025 14:14

** U.S. homebuilder Lennar's shares LEN.N fall 2% to $124.75 premarket

** Raymond James downgrades rating to "underperform" from "market perform", without price target

** Brokerage reflects on Lennar's dour Q3 results last week and says company's "volume-based operating strategy is overdue for re-calibration"

** Expects forthcoming headwinds for LEN, including higher-cost land-banked lots embedded with mark-ups and interest costs,  challenging process of reversing aggressive use of selling incentives and ongoing overhead spend absorbed on teams and technology

** 5 of 20 brokerages rate stock "buy" or higher, 14 "hold" and 1 "sell"; their median price target is $133 - LSEG-compiled data

** As of last close, stock has fallen 2.8% YTD

 (Reporting by Aatreyee Dasgupta)

 ((Aatreyee.Dasgupta@thomsonreuters.com))