UPDATE: JP Morgan Upgrades KB Home to Overweight on Valuation

JP Morgan increased its rating on KB Home KBH from Neutral to Overweight and raised its price target from $950 to $10.10. JP Morgan commented, "We note that while KBH currently remains challenged from a fundamental perspective, we believe this is substantially reflected by the company's current valuation, trading at only 0.84x our current P/B (ex-adj. FAS 109 charges), a 51% discount to its peers. Moreover, we note that with only a moderate degree of improvement in fundamentals, we estimate near breakeven EPS in FY13, which we believe is currently not reflected in the stock's valuation." KB Home closed at $10.10 on Wednesday.