Time to Remove Valuation Discount from Shares of KB Home (KBH)

Analyst at MKM Partners reiterated their Buy rating on KB Home (NYSE: KBH) abd raised their price target to $18.00 (from $13.00).

“Although fiscal 3Q was not a perfect quarter, in our view, it does provide us enough comfort to remove some of the significant valuation discount we had been applying to KBH’s stock vs. its peers,” said Homebuilding Analyst, Megan McGrath.

“Prior to Friday’s earnings report, KBH had been trading at roughly 1.3x adjusted book value vs. the homebuilder average of roughly 1.75x,” noted McGrath, adding that “We believe that the company demonstrated enough progress on gross margins, ASP and SG&A for much of that discount to be removed.”

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 $15.26 yesterday.

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