Reducing Estimates and PT to $73 Ahead of 2Q26 Earnings

Research evidence excerpt

Reducing Estimates and PT to $73 Ahead of 2Q26 Earnings

June 8, 2026 Lennar Corporation

(LEN, Sell, $73 PT)

Ryan GilbertHOUSING Reducing Estimates and PT to $73 Ahead of 2Q26 Earnings (212) 527-3524 rgilbert@btig.com

Company Data

WHAT YOU SHOULD KNOW: LEN reports fiscal 2Q26 earnings on 06/11/26 after theAND Closing Price $91.88 close and the call will be on the 12th. We’re reducing estimates ahead of earnings

Price Target $73.00 on lower gross margin, primarily due to an updated analysis of the total cost of land

banking as well as a more cautious view on LEN’s ability to reduce incentives due to Market Cap (M) $22,458.96REAL elevated completed specs. We’re reducing 2Q26 and FY26 EPS by -4% and FY27 by Enterprise Value (M) $24,388.42

-11%. The lower estimates move our price target to $73 from $77. Our FY26 est. is Shares Out (M) 244.44

in-line with consensus but FY27E is -11% lower. The investor bull case for LEN, as we Avg Daily Vol-3 Months (M) 2.97

understand it, is that margins have been so eroded that a demand improvement will Dividend / Yield $2.00 / 2.2%ESTATE produce more operating leverage and thus stronger earnings growth than other large

cap peers. 2Q26 should be an important barometer for this thesis given peers have Revisions

been relatively upbeat on demand. We believe the higher cost from land banking that Previous Current

has yet to fully season, as well as elevated spec levels heading into 2Q26 and sidelined Rating Sell Sell

SFR investors, could limit operating leverage. The stock has underperformed YTD, down Price Target $77.00 $73.00SERVICES -12% ytd vs. our builder coverage average -7%, as well as since the end of February, FY26E Sales 30,590.82 30,590.82

-21% vs. our coverage -15%. The multiple has also compressed -12% ytd to 1.2x vs. the