UPDATE: Compass Point Raises PT to $25 on Lennar Corporation

Compass Point increases its price target from $21.50 to $25 on Neutral rated Lennar Corporation LEN as Rialto gains momentum. Compass Point notes, "The company continues to execute on its strategy of finding attractive land deals in well positioned submarkets as evidenced by consistent order and margin growth without the help of additional incentives or weaker pricing, and we are increasingly confident that earnings from Rialto will benefit cash flows in the coming years. Our new price target of $25.00 assumes a 7% ROI against what we now expect to be a 9.4% ROE in 2013, as well as a 1-year discount horizon on the deferred tax asset." LEN closed at $25.79 yesterday.