KB Home (KBH) PT Lowered to $80 at UBS

UBS analyst John Lovallo lowered the price target on KB Home (NYSE: KBH) to $80.00 (from $86.00) while maintaining a Buy rating.

The analyst commented, "Following FY2Q operating results and KBH's revised FY25 financial outlook, we lower our FY25e-FY27e adj EPS from $7.40 to $6.60, $8.60 to $8.00 and $9.80 to $9.55, respectively. Our revised estimates are driven by softer volume and margin expectations, offset in part by higher than previously modeled share repurchases. We also lower our PT on KBH shares from $86 to $80, still based on what we view as an undemanding multiple of ~10x our FY26e EPS. Despite choppy market conditions, we believe the setup for homebuilder stocks remains favorable, given reset expectations and the group's tendency to bounce ahead of a bottom. We maintain our Buy rating on KBH shares."

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