UPDATE: Citigroup Downgrades D.R. Horton to Neutral

Citigroup has downgraded D.R. Horton (NYSE: DHI) to Neutral from a Buy in a move they said was due to valuation.

Describing the downgrade, Citigroup said that "DHI is up ~19% since early September versus the homebuilder index which is up ~6%. At ~1.4x P/TBV or ~1.1x P/TBV when its DTA is included, DHI trades at a ~20% premium to its peer group average and is the most expensive name in our homebuilder coverage universe on P/TBV metrics. Our downgrade not withstanding, we very much remain fans of the DHI story and would likely use a pullback in the shares as an opportunity to revisit the name again."

DHI closed at $11.55 on Friday.