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UPDATE: JP Morgan Upgrades KB Home to Overweight on Valuation

Related KBH
Buckingham Initiates Coverage On Several Homebuilders
Compass Point Research Offers 'The Home Builder Hope Trade'
KB Home Posts 2Q Profit as Selling Prices Rise (Fox Business)

JP Morgan increased its rating on KB Home (NYSE: KBH) from Neutral to Overweight and raised its price target from $9.50 to $13.

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.

Latest Ratings for KBH

DateFirmActionFromTo
Oct 2014Buckingham ResearchInitiates Coverage onBuy
Oct 2014BarclaysMaintainsUnderweight
Oct 2014Compass PointUpgradesSellNeutral

View More Analyst Ratings for KBH
View the Latest Analyst Ratings

Posted-In: JP MorganAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

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