The downgrade to Neutral suggests that Citigroup believes PulteGroup's stock may not provide significant upside potential relative to the market or its peers in the short term. However, the increase in the price target to $113 implies that Citigroup still sees some positive aspects in PulteGroup's fundamentals or market position that could support a higher valuation. The mixed sentiment could lead to a neutral short-term impact on the stock price as the market digests both the downgrade and the increased price target.