NEW YORK (AP) -- A Keefe, Bruyette & Woods analyst on Wednesday upgraded Lennar Corp. to "Outperform," saying that a recent sell-off of the homebuilder's shares has given them an attractive price.
THE BACKGROUND: Over the past four weeks, the Miami company's shares are down about 11 percent.
Like other homebuilders, Lennar shares took a big hit a few years ago when the housing market collapsed. But over the past several months, they've gotten a boost from an uptick in demand for new homes.
THE OPINION: Analyst Jade Rahmani, who also raised his price target by $3 to $43, said Lenar distinguishes itself through its strength in core homebuilding, unique land sourcing and potential value creation through other investments.
Rahmani added that Lennar's future results should get a boost from continued sales growth and rising home prices, while its land holdings are also attractive given possible scarcities in certain markets.
THE SHARES: Up 25 cents to $36.87 in midday trading.