Goldman Sachs Maintains Neutral on Lennar Corporation (LEN) as Incentives and Demand Uncertainty Cloud 2026 Outlook

Company Overview - Lennar Corporation (NYSE:LEN) is one of the largest homebuilders in the U.S., founded in 1954 and headquartered in Miami-Dade County, Florida [4] Financial Performance - In the fourth quarter of 2025, Lennar delivered 23,034 homes, increasing its community count to 1,708, which represents an 18% year-over-year increase [3] - The company improved operational efficiency by reducing cycle time to 127 days from 138 days and increasing inventory turns to 2.2x from 1.6x a year earlier [3] - At the end of the quarter, Lennar had $3.4 billion in cash and total liquidity of $6.5 billion, with $3.2 billion returned to shareholders during fiscal 2025 [3] Market Position and Outlook - Goldman Sachs raised its price target on Lennar to $125 from $120 while maintaining a Neutral rating, citing mixed housing signals and a slowdown in housing activity into the fourth quarter [1] - Builders, including Lennar, are relying on higher incentives to sustain new-home closings, which is pressuring gross margins despite modest revenue beats [1] - The company is positioned to manage near-term margin pressure due to its scale, liquidity, and operational discipline, which may benefit it when housing demand stabilizes [4]