UPDATE: Goldman Sachs Raises PT to $19 on KB Home on Operational Turnaround

Goldman Sachs reiterated its Buy rating on KB Home

and raised its price target from $17 to $19. Goldman Sachs noted, "We increase our 2012-2014 revenue and EPS estimates to reflect the operational turnaround at KB Home. Our 2012 EPS change also reflects the effect of tax refunds in 3Q2012. e raise our 12-month target price to $19 from $17. We apply a 30% discount to KBH's long-term adjusted book value multiple (i.e., a 30% discount to the long-term average of 1.64X vs. a 50% discount earlier, based on the company's demonstrated and continuing turnaround as seen in the recently reported 3Q results) and an unchanged 11X multiple to normalized earnings of $1.81 (also unchanged)." KB Home closed at $14.63 on Monday.