Lennar "market outperform," target price reduced

01/28/08 - JMP Securities

NEW YORK, January 28 (newratings.com) - Analysts at JMP Securities reiterate their "market outperform" rating on Lennar Corporation (LEN), while reducing their estimates for the company. The target price has been reduced from $31 to $24.

In a research note published on January 25, the analysts mention that the company has reported its F4Q07 losses per share significantly higher than the estimates on account of higher-than-expected charges. Lennar’s backlog is now 65% lower on a y/y basis, the analysts say. In the event of the housing market bottoming out, significant changes to the company’s operating cost structure, along with huge write-downs, would help improve Lennar’s profitability in 2H08, JMP Securities adds. The EPS estimate for 2008 has been reduced from $0.25 to -$1.00.