BofA Securities Analyst Projects Millrose Spin-Off To Weigh On Lennar's Earnings, Cuts Price Target

BofA Securities analyst Rafe Jadrosich updated the price forecast for Lennar Corp (NYSE:LEN) to reflect the impact of the weak housing market and the Millrose Properties spin-off.

The analyst slashed the price forecast to $130 from $140 while retaining a Neutral rating.

Last month, the company completed the spin-off, contributing $5.5 billion in land assets and $1.0 billion in cash.

Jadrosich noted Lennar will pay Millrose an annual option fee of 8.5%, which is expected to be reflected in the cost of goods sold.

The analyst projected a modest net income headwind from Millrose in 2025 (~2%), ...