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- Citi downgraded home builders Lennar (NYSE:LEN) and D.R. Horton (NYSE:DHI) to Neutral from Buy on softening housing activity this summer.
- The analysts trimmed both LEN’s and DHI’s estimated EPS for FY24.
- For both LEN and DHI, Citi said it sees limited near-term catalysts for the stock until ’25, with September rate cuts at least partially priced in.
- Citi cut the target prices of both, LEN’s was slashed from $174 to $164, while for DHI, it was cut to $156 from $181.
- SA quants rates LEN at Buy, while analysts rate it at Hold, DHI is rated at Buy by both SA analysts and quants.
- Shares of LEN class A common stock were down 2.2%, while DHI was down 1.6% in premarket trade.