Americas Building Homebuilders: Lennar & KB Home F2Q EPS Preview

Goldman Sachs lowered EPS estimates for Lennar and KB Home, citing a weak spring selling season and broader macro pressures. Despite the downward revisions, analyst price targets remain unchanged.

Key Takeaways

• 1.Downward revision of F2Q and F2026 EPS estimates for Lennar (LEN) and KB Home (KBH) due to macro volatility, rising mortgage rates, and a weak selling season.
• 2.Homebuilding stocks are trading below historical valuation averages, with a sector average of 1.2x forward P/TBV compared to the 1.4x post-GFC average.

Table of Contents

• Macro Volatility and Higher Mortgage Rates Suggest More Cautious Outlook
• Channel Checks Point to Weak Selling Season
• Expect Cautious Second Half Outlook
• Group Trades Below Long-Term Average
• F2Q EPS Preview: Lennar and KB Home
• Lennar: Neutral Rated, $100 Price Target
• Revising Estimates, Maintain Price Target
• Risks
• Updating Scenario Analysis
• KB Home: Neutral Rated, $56 Price Target
• Sector Valuation
• Disclosure Appendix