Update shared on19 Sep 2025
Fair value Increased 1.15%Lennar’s consensus price target was modestly increased to $125.43 as analysts cited improved sentiment driven by potential rate cuts, sector-wide valuation upgrades, and increased investor focus, reflecting only a slight upward revision to its fair value.
Analyst Commentary
- Bullish analysts cite investor optimism on the potential for lower interest rates.
- Recent Fed rate cuts are not expected to meaningfully alter the near-term housing market trajectory.
- Increased investor attention and scrutiny from generalist investors on the homebuilding group.
- Sector-wide valuation upgrades following a broad re-rating of homebuilder stocks.
- Price targets adjusted upward to reflect improved sentiment and forward expectations in the sector.
What's in the News
- Lennar repurchased 4.1 million shares for $507 million, completing 22.11% of its authorized buyback since January 2021.
- Announced four new residential communities in New Jersey, continuing geographic expansion with a focus on premium amenities and connectivity.
- Launched new home sales at Tuxedo Reserve, a large master-planned community in New York’s Hudson Valley; features mixed-use components and extensive amenities.
- Berkshire Hathaway acquired a minority stake in Lennar for approximately $600 million in 2025, purchasing 7.1 million shares.
- Multiple new master-planned communities and home collections launched in key markets (California, Florida, Arizona) featuring diverse home options and amenities targeting a wide range of buyers.
Valuation Changes
Summary of Valuation Changes for Lennar
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $124.00 to $125.43.
- The Future P/E for Lennar remained effectively unchanged, moving only marginally from 14.51x to 14.77x.
- The Net Profit Margin for Lennar remained effectively unchanged, moving only marginally from 6.12% to 6.08%.
Disclaimer
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