FBR Capital Raises Price Target on KB Home (KBH) Following 1Q EPS Beat

FBR Capital reiterated a Market Perform rating on KB Home (NYSE: KBH), and raised the price target to $15.00 (from $11.50), following the company's 1Q16 earnings report. KB Home reported headline 1Q16 EPS of $0.14 per share, which exceeded consensus expectations of $0.11. This was a good quarter for KB Home, as the company beat consensus expectations for deliveries and ASP, while gross margin was in line with expectations.

Analyst Patrick Kealey commented, "We reiterate our Market Perform rating on KBH and are increasing our price target to $15.00 from $11.50 after the release of KBH's 1Q16 results. KBH reported a solid quarter driven by better-than-anticipated top-line results, and higher-margin closings in backlog have the company poised for meaningful earnings growth in the back half of this year. We believe KBH's focus on shareholder value creation through a balanced capital allocation plan will continue to prove beneficial over the long term; however, we believe current valuation levels accurately reflect upside for shares at this time."

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 $13.10 yesterday.

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