Lennart (NYSE:LEN) stock fell 1.7% in premarket trading after Goldman Sachs downgraded the company to Neutral as it expects only limited catalysts in the near term.

“While we are seeing the potential benefits of greater exposure to first-time buyers for the first time as rates fall, “Much of this has already been factored into the valuation,” the analysts said.

“Given operating conditions, including continued volatility in 30-year mortgage rates and modestly increasing inventory for sale in key markets in Florida and Texas, we believe Lennar will continue to deploy financial incentives as necessary to achieve its growth objectives,” the note said.

Goldman Sachs also lowered its price target from $180 to $174.

Analysts added that uncertainty over the timing and potential financial impact of strategic initiatives, including land sales, is likely to remain a factor.

Both South African analysts and quantitative analysts rate the company as ‘Hold’.