Market Overview

UPDATE: Williams Financial Group Downgrades KB Homes to Sell; Not Capitalizing on Opportunities

Related KBH
The Fate Of Homebuilder Stocks Is Tied To This Data Point
Fast Money Picks For October 20

Williams Financial Group reduced its rating on KB Homes (NYSE: KBH) from Hold to Sell with a reiterated $11 price target.

Williams Financial Group noted, "Following another disappointing performance in orders, margins, community count and deliveries, we are downgrading shares of KBH to a Sell from a Hold rating.  While ASP trends have seen the sharpest rise among the companies we follow, we are disappointed that pricing has not yet meaningfully benefitted gross margins. Construction inflation added about $5K to build costs while ASP's moved up $25k q/q. Although some of the pricing movement can be attributed to geographic mix, we would have expected at least a moderate level of organic price increases to flow through to gross margin."

KB Home closed at $15.60 on Thursday.

Latest Ratings for KBH

Oct 2015Morgan StanleyUpgradesUnderweightEqual-weight
Sep 2015FBR CapitalMaintainsMarket Perform
Jun 2015JMP SecuritiesMaintainsMarket Outperform

View More Analyst Ratings for KBH
View the Latest Analyst Ratings

Posted-In: Williams Financial GroupAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings


Related Articles (KBH)

View Comments and Join the Discussion!

Get Benzinga's Newsletters