AllAnalyst Report
logoArgusMarch 18, 2021

Lennar Corporation: Raising estimates and boosting target to $115 from $100

Symbols
LEN
Sector(s)
Consumer Cyclical
Rating
Current Price
$108.05
Price Target
$NaN
Earnings Estimate
Summary

Lennar Corp. based in Miami, is one of the two largest builders of homes based on the purchase of CalAtlantic and 52,925 closings, across 20 states, in FY20. Rival D.R. Horton actually delivered more homes in FY19, but Lennar ranks number one in revenue, helped by an average sales price that is about $100,000 higher. The company's East region is its biggest, contributing 41% of deliveries. Lennar builds step-up (68% of closings), entry level (28%) and retirement (4%) homes with an average selling price of $400,000. The company also provides mortgage financing. Lennar's Multifamily business develops and manages apartment complexes through joint ventures. Homebuilding represented 93% of the company's $22.5 billion in FY20 revenue. It is also the biggest contributor to pretax earnings. The company's fiscal year ends on November 30.

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Analyst Profile

Chris Graja, CFA

Senior Analyst: Retail
Chris covers the Consumer sector for Argus. He was the #1 Stock Picker in the Household Durables sector, winning the 2019 StarMine U.S. Analyst award from Refinitiv. He was the #1 Stock Picker in Food and Staples Retailing, winning back-to-back U.S. Analyst Awards in 2015 and 2016. He received a prestigious Volunteer of the Year award from the New York Society of Security Analysts in 2000. Prior to Argus, Chris spent 16 years at Bloomberg Financial Markets. He was the Director of Training and a Senior Researcher for Bloomberg’s research division before joining the new Bloomberg magazine as Technical Studies Editor in 1993. He rose to Executive Markets Editor of the publishing group. Chris co-authored the book “Investing in Small-Cap Stocks,” which was published in three U.S. editions, an audio book, and two Chinese editions. Chris earned an MBA from Rutgers University. He is a CFA charterholder.