UPDATE: Citigroup Upgrades Lennar to Neutral on Growth and Margins

Citigroup raised its rating on Lennar LEN from Sell to Neutral and increased its price target from $22 to $35. Citigroup noted, "LEN shares underperformed peers by 13% since early June (up 33% absolute), and while the valuation looks a bit high versus historical levels, it has become more difficult to justify a Sell rating given its above-average growth/margins and the likelihood of valuation convergence among larger builders." Lennar closed at $34.65 on Monday.