Citigroup downgraded Indian property developer DLF Ltd to "sell" from "neutral" and cuts its target price to 150 rupees from 209 rupees.
"High leverage and mounting interest costs combined with tough macro, slowing demand, and the possibility of tighter liquidity pose significant downside risks," Citigroup said in a note dated on Thursday.
Citigroup added DLF would need a "rapid" resolution to its debt burden to preserve equity value over the medium term.
DLF is shedding non-core assets to pare debt, announcing on Thursday it would sell its 74% stake in a life insurance joint venture with US-based Prudential International Insurance Holdings Ltd to Dewan Housing Finance Corp.
DLF shares were up 1% at 0547 GMT.