Benzinga | Jan 19, 2022 01:41PM EST

KeyBanc Downgrades Lennar - Read Why

* KeyBanc analyst Kenneth Zener downgraded Lennar Corp (NYSE:LEN) to Underweight from Sector Weight with an $86 price target, implying a 13% downside.

* The analyst thinks builders' operational success cannot offset cyclical tailwinds ebbing in time.

* Lennar's "low" P/E multiples partly discount "peak" margins, with book value at 1.7-times now in line with historic levels, Zener noted.

* The analyst also added that past cycles saw EPS fall before multiples P/E rose.

* Price Action: LEN shares are trading lower by 2.23% at $99.05 on the last check Wednesday.