Lennar falls as JP Morgan cuts to 'underweight'

Shares of U.S. homebuilder Lennar LEN.N down 2.4% at $130 premarket

JP Morgan downgrades rating to "underweight" from "neutral", cuts PT to $115 from $118

New PT shows a downside of 13.6% from the stock's last close

Brokerage expects margin pressure on co due to higher incentives and soft housing demand

Adds LEN's valuation seen stretched compared to peers

JP Morgan remains cautious on homebuilders amid affordability challenges and slowing market momentum

However, JP Morgan lifts D.R. Horton PT to $136 from $130, citing strong operational strength

5 of 20 brokerages rate the stock "buy" or higher, 12 "hold" and 3 "sell" or lower; their median PT is $125- data compiled by LSEG

YTD, shares up 1%