Oppenheimer Downgrades Landsea Homes Corp. (LSEA) to Perform

Oppenheimer analyst Tyler Batory downgraded Landsea Homes Corp. (NASDAQ: LSEA) from Outperform to Perform.

The analyst comments "Last night, LSEA announced an agreement to be acquired by New Home Co. for $11.30/share (EV of $1.2B). The deal is supported by a $650M cash equity commitment from Apollo Funds, New Home's largest shareholder. It's likely the deal closes due to Apollo's backing, in our view. The valuation seems reasonable representing 80% of our FY25 tangible BVPS and 11x our FY25 EPS estimate. We view this transaction as a positive for small-cap builders, especially BZH, which currently trades at just over 50% of CY25 BVPS. Given that the proposed acquisition price is near our prior price target, we are moving our rating to Perform from Outperform and rescinding our $11 PT."

For an analyst ratings summary and ratings history on Landsea Homes Corp. click here. For more ratings news on Landsea Homes Corp. click here.

Shares of Landsea Homes Corp. closed at $7.02 yesterday.

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