UPDATE: Citigroup Downgrades Lennar to Sell on Stretched Valuation

Citigroup lowers its rating on Lennar

from Neutral to Sell and reduces its price target from $26 to $22. Citigroup notes, "We assume coverage on LEN shares with a Sell rating and $22 target price based on normalized earnings and (relative) forward P/TBV (1CQ13) valuation analysis, highlighted earlier in this report. We see LEN as a good company with a stretched valuation. More specifically, post solid year/date gains, we expect pressure on LEN's P/TBV of 1.9x which is at premium to peers versus its normal 11% discount (2-year median)." LEN closed at $26.29 on Thursday.