KB Home (KBH) PT Lowered to $33 at Mizuho Securities Following 1Q
Mizuho Securities lowered its price target on KB Home (NYSE: KBH) to $33.00 (from $35.00) while maintaining a Neutral rating following the company's 1Q earnings report. 1Q EPS of $0.40 beat the Street estimate of $0.29 on higher gross margins.
Strong demand / pricing power, plus backlog costs are "locked in" and mgmt knows "where the prices will be", providing near-term visibility. Mizuho updated FY18 / 19 EPS estimates to $2.72 / $3.10, ($2.71 / $3.16), driven by a slightly higher FY18 gross margin estimate.