Brokerages optimistic on Lennar despite homebuilder's quarterly profit miss
17/12/2021 13:39
** Homebuilder Lennar LEN.N extends losing rally, dropping
0.5% premarket after slipping 4% on Wednesday
** Co missed quarterly profit estimates Weds as COVID-led
supply issues pushed lumber costs higher, delayed house
deliveries urn:newsml:reuters.com:*:nL4N2T04D5
** Still, at least 5 brokerages raise co's PTs
** RBC Capital Markets hikes PT to $115 from $102, saying
brokerage's revised guidance assumes supply chain challenges
will stabilize
** "Margin trajectory may have fallen short of bulls’ hopes,
but the LT opportunity from the asset light shift and capital
return is notable," says RBC
** LEN well-positioned in current housing market based on
broad geographic footprint, tech focus and reduced financial
leverage, among others, says KBW, raising 2022-2023 estimates to
$15.81 and $15.97 from $12.87 and $13.18
** "LEN has begun a trend of more consistently returning a
greater amount of capital to shareholders" - J.P.Morgan, raising
PT to $142 from $127
** Avg rating is "buy", median PT is $130
** YTD, shares up 43%
(Reporting by Anisha Sircar in Bengaluru)
((Anisha.Sircar@thomsonreuters.com;))