J.P. Morgan Maintains Neutral on KB Home

J.P. Morgan is out with its report today on KB Home

, maintaining Neutral. In its report, J.P. Morgan writes, "Trading at 0.45x P/B (ex-adjusted FAS 109 charges), a 41% discount to its larger-cap peers', we believe KBH's valuation is appropriate, as we believe recent heightened investor concerns regarding liquidity are unlikely to abate over at least the next two quarters, negative EPS in 2012 further pushes out visibility for a reversal of the company's DTA to book value, and continued below industry average gross margins should remain an additional investor concern. Thus we rate the stock Neutral relative to its peers." At the time of posting, shares of KBH were trading at $5.89, up 2.97% from Thursday's close.