Cramer is bullish on Lennar stock: ‘mortgages are still very cheap’
- Famed investor Jim Cramer explains his bullish view on Lennar Corp.
- Citi analyst also sees upside in the homebuilder to $148 a share.
- Lennar stock is already up 35% versus the start of the year 2023.
Famed investor Jim Cramer is bullish on Lennar Corp (NYSE: LEN) even though the Fed officials see more rate hikes ahead.
Cramer’s bull case for Lennar stock
Copy link to sectionLast week, the Census Bureau said new homes sales increased 12.2% in May to 763K. In comparison, economists had forecast 675K only.
Still, the United States has a sizable shortage of new homes and Cramer expects Lennar Corp to play a central role in filling that gap. On CNBC’s “Squawk on the Street”, he said:
Mortgages are still very cheap historically. There’s a scarcity. We need that 2 million built. Lennar is the biggest beneficiary because they know how to build a home well.
The stock market news arrives only weeks after the home construction company reported a strong second quarter on accelerated demand (find out more).
Citi sees upside in Lennar stock to $148
Copy link to sectionAlso on Wednesday, Citi analyst Anthony Pettinari maintained his “buy” rating on Lennar stock and raised his price objective to $148 that signals another 20% upside from here.
His bullish view is also based on the housing shortage and extends to other construction giants as well. In a note to clients, Pettinari said:
Market does not have a path to close the housing deficit in the near-term. Tight supply may provide a multi-year tailwind for builders.
Note that Lennar Corp is a dividend stock that currently pays a yield of 1.21% which makes up for an additional reason to have it in your portfolio.
