UPDATE: Citigroup Downgrades MDC Holdings to Sell on Stretched Valuation

Citigroup reduces its rating on MDC Holdings

from Neutral to Sell and cuts its price target from $26 to $23. Citigroup comments, "We assume coverage on MDC shares with a Sell rating and $23 target price based on normalized earnings and (relative) forward P/TBV (1CQ13) valuation analysis. We see MDC as another good company with a stretched valuation. More specifically, post solid year/date gains, we expect MDC's ~50% year to date P/TBV multiple expansion (highest year/date expansion in group) to regress." MDC closed at $26.93 on Thursday.