From a technical perspective they indicators are all bearish and as earnings approach next week commentary is also very bearish which is never a good sign pre earnings, analysts never usually risk looking like fools.
Last week, analysts at Wedbush upgraded their home builder view, noting that with hearty consumer demand for housing, a supportive economy, low rates, and “reasonable” valuations, “investors should be willing to pay a higher multiple” for homebuilder stocks.
Not so fast, said a Raymond James analyst on Tuesday.
“Ahead of next week’s earnings reports from Lennar LEN, -2.62% and KB Home KBH, -3.49% , we are highlighting our increased near-term caution with the homebuilding sector by preemptively lowering ratings on the aforementioned names,” “Valuations are now trading above cyclical median multiples,” Buck Horne wrote.
AVERAGE ANALYSTS PRICE TARGET $58
AVERAGE ANALYSTS RECOMMENDATION BUY
P/E RATIO 9.39
COMPANY PROFILE
Lennar Corp. is a homebuilder company, which engages in the provision of real estate related financial and investment management services. It operates through the following segment: Lennar Financial Services, Lennar Multifamily and Rialto. The Lennar Financial Services segment focuses on the mortgage financing, title insurance and closing services for both buyers of homes and others. The Lennar Multifamily develops, constructs and manages property of multifamily rental. The Rialto segment involves in raising, investing, and managing third-party capital, originating, and selling into securitizations commercial mortgage loans. The company was founded by Gene Fisher and Arnold Paul Rosen in 1954 and is headquartered in Miami, FL.
Last week, analysts at Wedbush upgraded their home builder view, noting that with hearty consumer demand for housing, a supportive economy, low rates, and “reasonable” valuations, “investors should be willing to pay a higher multiple” for homebuilder stocks.
Not so fast, said a Raymond James analyst on Tuesday.
“Ahead of next week’s earnings reports from Lennar LEN, -2.62% and KB Home KBH, -3.49% , we are highlighting our increased near-term caution with the homebuilding sector by preemptively lowering ratings on the aforementioned names,” “Valuations are now trading above cyclical median multiples,” Buck Horne wrote.
AVERAGE ANALYSTS PRICE TARGET $58
AVERAGE ANALYSTS RECOMMENDATION BUY
P/E RATIO 9.39
COMPANY PROFILE
Lennar Corp. is a homebuilder company, which engages in the provision of real estate related financial and investment management services. It operates through the following segment: Lennar Financial Services, Lennar Multifamily and Rialto. The Lennar Financial Services segment focuses on the mortgage financing, title insurance and closing services for both buyers of homes and others. The Lennar Multifamily develops, constructs and manages property of multifamily rental. The Rialto segment involves in raising, investing, and managing third-party capital, originating, and selling into securitizations commercial mortgage loans. The company was founded by Gene Fisher and Arnold Paul Rosen in 1954 and is headquartered in Miami, FL.