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Lennar Upgraded, Target Raised at J.P. Morgan Following Earnings Beat

Lennar was upgraded to overweight and its price target raised to $141 a share at J.P. Morgan after the homebuilder's earnings report.
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Shares of Lennar  (LEN) - Get Report jumped Friday after the homebuilder was upgraded the stock to overweight from neutral by analysts at J.P. Morgan on the back of its stronger-than-expected second-quarter report.

The investment firm raised its price target on the to $141 a share from $115. 

"We view the stock as attractive relative to its peers and effectively not reflecting the company’s significant and ongoing business transformation,” JPMorgan analyst said, according to Bloomberg. 

Lennar shares at last check were 3% higher at $97.49. 

Earlier this week Lennar reported fiscal second-quarter net income leaped 61% on 22% higher revenue.

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The company also increased its target for the amount of assets it earlier had said it would spin off.

The stronger-than-expected report comes as post-pandemic demand for housing in the U.S. is nothing short of frenzied.

On the supply side, Reuters reports, Commerce Department data on Wednesday showed that U.S. homebuilding rebounded less than expected in May. That's because expensive lumber and shortages of other materials constrained builders.

For the quarter ended May 31, the Miami company earned $831.4 million, or $2.65 a share, compared with $517.4 million, or $1.65 a share, in the year-earlier quarter.

Revenue reached $6.43 billion from $5.29 billion.

A survey of analysts polled by FactSet produced consensus estimates of earnings of $2.38 a share on revenue of $6.1 billion.