Lennar +2.3% as Goldman upgrades to Conviction Buy

|About: Lennar Corporation (LEN)|By:, SA News Editor

Lennar (LEN+2.3% premarket after Goldman Sachs upgrades shares to Conviction Buy from Neutral with a $48 price target, from $38.

Goldman thinks the market is valuing LEN almost exclusively for its core homebuilder business, while ascribing little value to its ancillary businesses; the firm's deep dive on FivePoint communities, Rialto and Multifamily drives its 2014-15 EPS estimates a respective 2% and 9% above consensus.

The firm expects new home sales growth to accelerate to 20% by Q4 2014 from 5% in Q1.