Lennar's (NYSE:LEN) Outperformance Should Continue

Impressed by the recently quarterly results of Lennar (NYSE:LEN), UBS sees their outperformance continuing, although caution on possibly waiting for a better entry point.

UBS says, "We were particularly impressed with Lennar’s results in its most recently reported quarter and would highlight a number of positives: 1) unit orders declined 6% YOY, leaving ending backlog down just 1% heading in F12; 2) EBIT margin (ex charges) remains impressive at 7% in F4Q, driven by lower SG&A; & 3) results in Rialto are exceeding our expectations. Given mgmt’s operating acumen, this outperformance should continue, even as conditions remain volatile through 2011."

UBS reiterates a "Neutral" rating on Lennar (LEN), which was trading at $19.56, down $0.28, or 1.41 percent, as of 2:49 PM EST. UBS raised their price target on Lennar from $17 to $21.