Lennar Corp. upgraded to neutral from sell at UBS

NEW YORK, Jul 15, 2008 (Thomson Financial via COMTEX) -- LEN | Quote | Chart | News | PowerRating -- Lennar Corp. Tuesday was upgraded to neutral from sell at UBS, which said a recent decline in the share price had reduced downside potential at the homebuilding company.

The stock closed Monday at $10.24, down 71% over the past 52 weeks.

UBS said that while it was skeptical about the company's "Everything's Included" model, it was more comfortable with its liquidity position and its ability to generate cash in the second half of the year.

"Further, although its off balance sheet exposure remains a risk, we believe management has made significant strides to lessen any potential impact," it said.

The firm lowered its 2009 earnings outlook on the company to 15 cents a share from 40 cents a share. The mean estimate of analysts polled by Thomson Reuters is for a loss of 10 cents a share.

UBS said that although the sell-off in the shares was overdone, "we remain on the sidelines generally, given the uncertainty around how recent troubles at the government sponsored enterprise will impact mortgage market liquidity and demand." Ryan Vlastelica rv/pc

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