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.