Credit Suisse Made the Right Call, Lennar 3.2% Lower (LEN)

Published on Wed, 02/06/2013 - 10:11
By Robert Cotter in Analyst reflections, LEN, analyst reflections, lennar, nyse:len

One week ago Lennar (NYSE:LEN) was downgraded from Outperform to Neutral at Credit Suisse. Lennar stocks closed at $40.55, a 3.2% loss over the course of one week.

Lennar Corporation constructs and sells single-family attached and detached homes, and to a lesser extent multi-level buildings as well as as buys and sells residential land. The Company also provides mortgage financing, title insurance, closing services and other ancillary services (including personal lines insurance, high-speed Internet and cable television).

Lennar share prices have moved between a 52-week high of $43.22 and a 52-week low of $22.01 and are now trading 87% above that low price at $41.14 per share. Over the last five market days, the 200-day moving average (MA) has gone up 0.7% while the 50-day MA has advanced 0.5%.

Potential upside of 3.4% exists for Lennar, based on a current level of $41.14 and analysts' average consensus price target of $42.54. The stock should discover initial support at its 50-day moving average (MA) of $39.60 and subsequent support at its 200-day MA of $33.68.

By Robert Cotter
rcotter@fnno.com

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