UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Lennar Corporation on In-Line Results

In a report published Monday, Deutsche Bank analyst Nishu Sood reiterated a Hold rating on Lennar Corporation LEN, and slightly raised the price target from $37.00 to $38.00. In the report, Sood noted, “Lennar's results were largely in line with forecasts; however, gross margins were lower than expected. While gross margins at 22.1% were below DB and the Street at 23%, the firm reaffirmed its 23-24% margin guidance for the year. The reaffirmed margin guidance provides some reassurance to investors; however, reduced momentum in margins is significant in that margins have been the highlight of the Lennar story over the past 15-18 months. Lennar also stated that it has its land pipeline for 2013 and 2014 fully loaded and that it is now buying land for 2015 and beyond. The firm spent roughly $500 mm on land in 1Q13 and it plans on spending at least as much through the balance of the year. The $2 billion Lennar is spending in 2013 compares to the $1.8 billion the firm spent over the six quarters prior to F1Q13.” Lennar Corporation closed on Friday at $40.48.