UPDATE: Williams Financial Downgrades KB Home (KBH) to Sell
(Updated - December 21, 2012 10:25 AM EST)
Williams Financial downgraded KB Home (NYSE: KBH) from Hold to Sell post Q4 results with an $11 price target.
"Following another disappointing performance in orders, margins, community count and deliveries, we are downgrading shares of KBH to a Sell from a Hold rating. While ASP trends have seen the sharpest rise among the companies we follow, we are disappointed that pricing has not yet meaningfully benefitted gross margins... Additionally, we do not believe the pace at which the company is driving prices is sustainable longer term and will likely see geographic mix begins to diversify away from the current California concentration, and as pricing begins to approach pre-downturn levels. Given the modest margin improvements on 14% ASP growth this quarter, we are less inclined to believe meaningful margin expansion is likely in the intermediate term."
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 $15.60 yesterday, with a 52 week range of $6.17-$17.30.
Williams Financial downgraded KB Home (NYSE: KBH) from Hold to Sell post Q4 results with an $11 price target.
"Following another disappointing performance in orders, margins, community count and deliveries, we are downgrading shares of KBH to a Sell from a Hold rating. While ASP trends have seen the sharpest rise among the companies we follow, we are disappointed that pricing has not yet meaningfully benefitted gross margins... Additionally, we do not believe the pace at which the company is driving prices is sustainable longer term and will likely see geographic mix begins to diversify away from the current California concentration, and as pricing begins to approach pre-downturn levels. Given the modest margin improvements on 14% ASP growth this quarter, we are less inclined to believe meaningful margin expansion is likely in the intermediate term."
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 $15.60 yesterday, with a 52 week range of $6.17-$17.30.