UPDATE: Citigroup Downgrades Beazer Homes to Sell, Cuts PT to $1.80 on Valuation

Citigroup assumes a Sell rating on Beazer Homes BZH from Buy, and cuts its price target from $4.50 to $1.80. Citigroup says, "We anticipate that the stock may selloff on a: (1) ~40% reduction in TBV through 1CQ13; (2) further increase in shareholder dilution to reduce leverage/grow; and (3) continuance of below average margins from potentially less favorable communities. In addition, BZH shares tend to be most vulnerable if the group does correct given its high beta/leverage." BZH closed at $2.51 on Thursday.