Ticonderoga Downgrades KB Home (KBH) to Neutral; Liquidity Not the Issue - Performance Is
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Price: $56.06 -0.48%
Rating Summary:
4 Buy, 24 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 24 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga downgraded KB Home (NYSE: KBH) from Buy to Neutral.
Ticonderoga analyst says, "Improving fundamentals witnessed in 2010 have evaporated and we do not see a strong roadmap to recovery. The turn in the story has now become a grind out of a significant loss situation which is decimating book value and has caused us to drop our EPS estimates sharply. We believe more focus is needed on profitability and the balance sheet with less emphasis on growth."
"Unlike much of The Street, our cash flow analysis implies KBH is likely just fine. However, management broached the subject of tapping the capital markets for potential liquidity, which in essence, crushed the stock. Fears of an equity offering ran amok, adding insult to injury Wednesday. While some of our brethren were up in arms about a potential equity offering, we see it a bit differently. We have said for some time that too many builders have too much debt and eventually would need to tap the equity markets."
For more ratings news on KB Home click here and for the rating history of KB Home click here.
Shares of KB Home closed at $10.08 yesterday.
Ticonderoga analyst says, "Improving fundamentals witnessed in 2010 have evaporated and we do not see a strong roadmap to recovery. The turn in the story has now become a grind out of a significant loss situation which is decimating book value and has caused us to drop our EPS estimates sharply. We believe more focus is needed on profitability and the balance sheet with less emphasis on growth."
"Unlike much of The Street, our cash flow analysis implies KBH is likely just fine. However, management broached the subject of tapping the capital markets for potential liquidity, which in essence, crushed the stock. Fears of an equity offering ran amok, adding insult to injury Wednesday. While some of our brethren were up in arms about a potential equity offering, we see it a bit differently. We have said for some time that too many builders have too much debt and eventually would need to tap the equity markets."
For more ratings news on KB Home click here and for the rating history of KB Home click here.
Shares of KB Home closed at $10.08 yesterday.
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