01:20 AM EDT, 06/06/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $174, up $14, is 10.5x our FY 25 (Nov.) EPS view of $16.59 (unchanged) and is a premium to the 10.3x 10-year forward P/E average. We acknowledge the affordability headwinds facing consumers when it comes to buying a home. We note mortgage rates have averaged 50 bps ahead of 2023 levels in the first 21 weeks of the year. This has paired with record home values which have risen 47% ahead of March 2020 levels. Decelerating U.S. labor trends have also added to the headwinds, making it hard for consumers to qualify for a mortgage and to save up for a security deposit. Despite a slightly weaker consumer, economic data continues showing resilience, which adds to the higher for longer narrative, in our view. Given most mortgage rates sit below 4%, we project homebuilders will maintain recent market share gains through 2025, even as rates come down. We see LEN poised to offset short-term margin headwinds and see it benefiting from its scale and consumer diversification as rates come down.