Wall Street’s huge market rally on Monday blunted the impact of an analyst’s downgrade of homebuilder Ryland Group Inc. earlier in the day.

Daniel Oppenheim of Credit Suisse downgraded Ryland shares to “neutral” from “outperform.” He wrote in an investor note that new home construction will continue to decline and sales of existing inventory will face continued price competition from foreclosures over the next several quarters.

“We think that that this lack of demand and the trouble among banks will lead to an even more dramatic decline in construction next year,” said Oppenheim, who reduced the stock’s 12-month target price to $19 from $28.

Ryland shares closed up 40 cents, or 2 percent, to $20.31 on the New York Stock Exchange.