Compass Point Upgrades KB Home (KBH) to Neutral on Reduced Risk Profile
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Price: $24.08 +0.84%
Rating Summary:
7 Buy, 15 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
7 Buy, 15 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade KBH Now!
Compass Point upgraded KB Home (NYSE: KBH) from Sell to Neutral with a price target of $20.50 (from $10.00).
The firm comments, "Following an impressive common equity and convertible notes offering, we do not believe our prior concerns regarding KBH's liquidity position are warranted. Furthermore, while issues with homebuilding margin still exist, the dramatic rise in 4Q12 ASP suggests that KBH is successfully executing on its mix shift strategy and selling more expensive homes to move-up buyers and high quality first time buyers. Our Neutral rating and price target increase reflects our belief that KBH will continue to improve its earnings power and reduce leverage, though the company still has work to do to fully shift its product offering up the price point scale and away from first-time home buyers."
The firm raised 2013E EPS estimate to $0.13 from $0.11 and introducing a 2014 estimate of $0.86.
For an analyst ratings summary and ratings history on KB Home click here. For more ratings news on KB Home click here.
Shares of KB Home closed at $18.10 yesterday, with a 52 week range of $6.46-$18.99.
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The firm comments, "Following an impressive common equity and convertible notes offering, we do not believe our prior concerns regarding KBH's liquidity position are warranted. Furthermore, while issues with homebuilding margin still exist, the dramatic rise in 4Q12 ASP suggests that KBH is successfully executing on its mix shift strategy and selling more expensive homes to move-up buyers and high quality first time buyers. Our Neutral rating and price target increase reflects our belief that KBH will continue to improve its earnings power and reduce leverage, though the company still has work to do to fully shift its product offering up the price point scale and away from first-time home buyers."
The firm raised 2013E EPS estimate to $0.13 from $0.11 and introducing a 2014 estimate of $0.86.
For an analyst ratings summary and ratings history on KB Home click here. For more ratings news on KB Home click here.
Shares of KB Home closed at $18.10 yesterday, with a 52 week range of $6.46-$18.99.
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