** 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%

(Reporting by Apratim Sarkar in Bengaluru)

((Apratim.Sarkar@thomsonreuters.com))