UPDATE: Bank of America Initiates Lennar Corp.

In a note released Friday morning, Bank of America analyst, Michael Roxland initiated coverage of Lennar Corp.

with a Buy rating and a $49 price target, which he noted represents 27 percent total returns. Roxland commented, "Lennar Corp. has been an astute land manager, selling land ahead of the downturn and buying land before the recovery gained momentum." He added, "LEN also has pursued a differentiated market approach, which has allowed it to drive order growth above the aggregate industry average." Despite this, Roxland said there appears to be some investor skepticism surrounding Lennar. He believes this skepticism is related to the income potential of Lennar's various businesses and its historically larger SG&A percentage. Following the initiation, shares of Lennar were trading up around half a percent, at last check.