UPDATE: Compass Point Reiterates Neutral Rating, Raises PT on Lennar Corporation on 2016 Valuation

In a report published Friday, Compass Point analyst Wilkes Graham reiterated a Neutral rating on

, and raised the price target from $40.00 to $47.00. In the report, Compass Point noted, “LEN reported an 11 cent headline beat in 4Q14, though 70% of the beat was driven by the Company's non-core business lines. However, with 2014 in the rear view, we were far more intrigued to hear Management's outlook on the recovering housing market and any general guidance they had for the year ahead. Notably, LEN's CEO (Stuart Miller) stated on the earnings conference call that while a number of macroeconomic factors have contributed to the ongoing ‘choppiness' in the housing recovery, the Company remains optimistic about the continuation of this somewhat at times ‘erratic' recovery. In particular, LEN describes the (1) recent changes to down payments, guaranty fees and underwriting standards articulated by FHFA and HUD, (2) consumer stimulus provided by lower gasoline prices, (3) greater affordability driven by lower interest rates, and (4) general improvements seen in the national employment environment as catalysts in 2015 to take the space higher.” Lennar Corporation closed on Thursday at $43.03.