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

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Goldman Sachs reiterated its Buy rating on KB Home (NYSE: KBH) 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.

Latest Ratings for KBH

DateFirmActionFromTo
Jan 2015Morgan StanleyInitiates Coverage onUnderweight
Jan 2015CitigroupMaintainsNeutral
Jan 2015SusquehannaDowngradesPositiveNeutral

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Posted-In: Goldman SachsAnalyst Color Price Target Intraday Update Analyst Ratings

 

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