Shares of Lennar (LEN) - Get Report shot higher Wednesday amid growing optimism about the real estate market, but the giant homebuilder's stock could be running out of room to grow after an epic 2019, a new report warned.

Lennar's stock price jumped 1.71% to $54.01 after the release of new stats showing a big jump in residential construction starts across the U.S.-- and anticipation of a second rate cut from the Federal Reserve - helped boost homebuilder share prices.

But after rising roughly 36% in 2019, Lennar's stock price may be running out of gas, warned Keybanc analyst Kenneth Zenar, who downgraded his rating on Lennar to sector weight from overweight.

Further Fed action is unlikely to provide enough fuel to keep Lennar's stock price rising at its current pace, and will be counterbalanced by moderating rate cut benefits, the stock's valuation ceiling, and a decline in cyclical demand as the winter months approach, the Keybanc analyst noted.

Lennar is set to report its third-quarter earnings on Oct. 2.

Lennar and other homebuilder stocks got a major boost on Wednesday, with the Commerce Department reporting that construction of new homes and apartments jumped 12.3% in August from same month last year, reaching highs not seen in more than a decade.