UPDATE: Stifel Nicolaus Downgrades DR Horton to Sell

Stifel Nicolaus lowers its rating on DR Horton (NYSE: DHI) from Hold to Sell based on valuation.

Stifel says, “Horton has recently traded within spitting distance of multi-year highs and in our view has priced in a faster housing recovery than we realistically envision. We struggle to find any near term catalyst to propel the stock to new multi-year highs and believe that the seasonal pattern of buying (trading) homebuilders ahead of a potential turn in the spring came a bit early this year. We see limited valuation upside potential remaining and material downside risk potential should recent housing optimism fade.”

DHI closed at $12.05 per share on Tuesday.