Updates

** Shares of Lifestyle Communities LIC.AX rise 4.5% to A$5.1, hitting their highest since March 19

** Stock on track for strongest trade since April 17, if gains sustain

** Citi raises target price to A$5.40 from A$5.1, retains "neutral" tag for the residential home developer

** Brokerage expects the market to be positively skewed toward takeover potential for LIC after U.S.-based Hometown Australia increased its stake in the company to ~13.2% from ~9.8%.

** Adds stock has traded at a significant discount to book value versus its peers, which trade at either a very small discount or a premium

** Hometown Australia made an initial acquisition in March, with the stock jumping 17.2% on the day; Citi expects a similar reaction on Monday

** Stock marginally up 0.8% YTD, including the day's moves