Market Overview

UPDATE: Compass Points Upgrades KB Homes to Neutral on Reduced Risk Profile

Related KBH
Housing Starts Up in March, Permits Decline - Analyst Blog
Will Universal Forest (UFPI) Post Upbeat Results This Quarter? - Analyst Blog
KB Home Turns 1Q Profit Amid Higher Prices (Fox Business)

Compass Points upgraded KB Homes (NYSE: KBH) from Sell to Neutral and raised the price target from $10.00 to $20.50.

Compass Points commented, "Following an impressive common equity and convertible notes offering, we do not believe our prior concerns regarding KBH's liquidity position are warranted. Furthermore, while issues with homebuilding margin still exist, the dramatic rise in 4Q12 ASP suggests that KBH is successfully executing on its mix shift strategy and selling more expensive homes to move-up buyers and high quality first time buyers. Our Neutral rating and price target increase reflects our belief that KBH will continue to improve its earnings power and reduce leverage, though the company still has work to do to fully shift its product offering up the price point scale and away from first-time home buyers."

KB Homes closed at $18.10 on Monday.

Posted-In: Compass PointsAnalyst Color Upgrades Analyst Ratings

 

Most Popular

Related Articles (KBH)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free