Compass Point Anticipates Slightly Higher Order Growth for Lennar

In a report published Monday, Compass Point analyst Wilkes Graham reiterated a Neutral rating and $34.50 price target on

. In the report, Compass Point noted, “We are maintaining our Neutral rating and $34.50 PT. LEN had a solid fourth quarter beating both our estimate and the Street's consensus by $0.12 and $0.11, respectively, on strong gross margin and aggressive pricing. While orders have slowed, LEN remains confident in that the short supply of available homes, limited land availability, and the improving economy will all be key drivers for the housing recovery story in 2014. Management noted on the call that while they have seen a ‘pause in the rate of housing improvement', they anticipate a robust spring selling season and believe that their land inventory is well positioned to carry them into 2015. Our $34.50 PT reflects slightly higher order growth (due to management's increase in community count guidance) as well as marginally higher SG&A margin assumptions.” Lennar closed on Friday at $37.40.