Market Overview

UPDATE: Sterne Agee Initiates KB Home at Neutral on Valuation

Related KBH
Markets Reverse Early Morning Losses; Still Lower On The Day
Fast Money Traders Share The Stocks To Buy In An Uptrend Market
KB Home Posts 2Q Profit as Selling Prices Rise (Fox Business)

Sterne Agee initiated coverage on KB Home (NYSE: KBH) with a Neutral rating and an $18.00 price target.

Sterne Agee analyst Jay McCanless noted, "We are valuing KBH at a 15.0x P/E multiple on our FY14E (FY ends in November) EPS of $1.17, which is at the low end of our FY14E P/E valuation range of 15.0x to 20.0x FY14E EPS. Since KBH's Y/Y operating comparisons for quarterly orders, closings, etc. have meaningfully lagged the peer average for over four quarters, we are hesitant to pay up for earnings at KBH's current valuation."

KB Home closed at $20.27 on Wednesday.

Posted-In: Sterne AgeeAnalyst Color Initiation Analyst Ratings

 

Related Articles (KBH)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters