Gabelli & Company Initiates Lennar at Buy

Gabelli & Company has published a research report on Lennar LEN initiating coverage on the company with a Buy rating and private market value of $32. In the report, Gabelli writes, "Lennar should continue to benefit from the recovery in housing. We estimate that Lennar should be able to double closings over the next few years, from 11,000 homes in 2011 to 25,000 in 2015, compared with peak closings of 50,000 in 2005. The “Everything's Included” product offering allows Lennar to achieve industry leading gross margins of over 20%. The company offers minimal customization options for buyers, which creates efficient use of labor and building materials. Lennar has lowered building cost from $60 per square foot before the crisis to $40 per square foot today." Lennar is currently trading up $1.42 from yesterday's $21.74 closing price.