Wells Fargo analyst Truman Patterson downgraded M.D.C. Holdings to Underweight from Equal Weight with a price target of $42, up from $39. In a research note to investors, Patterson says that while he remains secular bulls on Homebuilding and the equities, he expects the equity will lag the group's performance over the coming 12 months. The analyst adds that he believes the company's hyper growth trajectory is set to decelerate materially over the coming quarters, while gross margin and SG&A performance likely trails the group, and with it, a compression in valuation versus smid-cap peers.