Morgan Stanley Just Bet Against Berkshire Hathaway's Favorite Homebuilder

Impact · against what's priced in

The news for Lennar is largely neutral-to-negative as the market had already priced in the margin compression and guidance cuts, though Morgan Stanley's $65 target provides a new bearish anchor. Toll Brothers receives a minor positive catalyst as Morgan Stanley's 'Overweight' rating supports the 'luxury insulation' thesis that the market has previously declined to pay for.

TOL+0.20

Challenges what's priced in

The price assumes