ATLANTA ( TheStreet) -- Citigroup has intiated coverage of Beazer Homes ( BZH) with a buy rating. The bullish call on Beazer shares makes Citi the only securities firm with a buy rating on Beazer stock. The Citi call on Beazer is thematically linked to fears that Beazer doesn't even have the balance sheet strength to survive. Citi is making the argument, more or less, that Beazer shares are being priced as if existential risk for the company deserves to dominate outlook on the stock. Citi believes Beazer will survive, and the existential risk has made Beazer shares cheap. It's a common enough theme in securities research across many industries. A stock is being priced for bankruptcy, and that ultimately makes the stock an attractive opportunity for investors with a strong stomach. "For investors who are confident that BZH will survive, there is considerable upside in the stock relative to its current valuation," Citi wrote. Citi subtitled its initiation of coverage, "Cracks in Foundation But Property By No Means Condemned." Shares of Beazer reacted with a gain after the Citi initiation on Monday morning, up 3.5%, or 16 cents, to $4.72. Citi initiated Beazer coverage with a price target of $6.25. The current analyst consensus on Beazer shares is a 63 cent loss in the first quarter 2010, and an 87 cent loss for the full year. Beazer shares lost $1.22 in the final quarter of 2009. The Citi research report was far from a rave.