UPDATE: Topeka Capital Markets Initiates KB Home at Hold on Macro Caution

Topeka Capital Markets initiated coverage on KB Home (NYSE: KBH) with a Hold rating and a $17 price target.

Topeka Capital Markets said, "We are initiating coverage with a Hold and a $17 price target. KB Home has outlined a plan to profitability, but we remain concerned that restrictive mortgage financing for entry-level buyers, which we believe accounts for 70% of KBH's business, may delay the timing of that plan. Beyond the potential macroeconomic catalysts, we do not see another pending catalyst for the name, and as a result, we view the shares as fairly valued at current levels."

KB Home closed at $14.17 on Thursday.

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