Friday May 29, 1998 (2:40 pm EST)
Merrill Lynch Says Building Environment is Strong; Lennar Corp.
Among Stocks Recommended
NEW YORK, May 29 (Standard & Poor's) - Merrill Lynch
said the building environment is strong. The firm recommends
Lennar Corp (LEN 26 15/16 UP 1 13/16) , D.R.Horton
(DHI17 15/16 UP 1/2 ), Toll Brothers (TOL 25 3/4 UP
5/16), Centex Corp (CTX 35 15/16 UP 3/16) and Pulte
Corp (PHM 53 3/4 UP 1 1/16).
Analyst Robert Curran told Standard & Poor's major
homebuilders have been under pressure in recent weeks and
cumulatively down 19% from highs of March-April. He noted
that LEN particularly came under pressure with its heavy
California exposure. He believes this pressure, for group as
well, is unwarranted. Curran thinks the basic business is quite
intact, the backlog is quite strong, and mortgage rates are at
attractive levels (even edging down). He said earnings
prospects are solid for the next 12 to 18 months, particularly
for companies with heavy California base. Curran sees 1998
earnings of $2.13 per share and 1999 earnings of $2.78 per
share for LEN.
29-May-1998 14:40:09 (01219583) Copyright 1998 Standard & Poor's Investment
Advisory Services, Inc. The information contained in this report may not be published,
broadcast, rewritten or otherwise distributed without prior written consent from Standard &
Poor's. For permission call 1-212-770-4639.
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