Market Overview

UPDATE: Sterne Agee Initiates KB Home at Neutral on Valuation

Share:
Related KBH
Fast Money Traders Reveal Their Picks At Market Highs
Consolidation In The Homebuilding Sector Continues As Toll Brothers Buys Coleman Homes
Toll Brothers Tops Views As Hovnanian Breaks Out Before Earnings (Investor's Business Daily)

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.

Latest Ratings for KBH

DateFirmActionFromTo
Nov 2016Evercore ISI GroupInitiates Coverage OnHold
Sep 2016Wells FargoInitiates Coverage onMarket Perform
Sep 2016WedbushInitiates Coverage onOutperform

View More Analyst Ratings for KBH
View the Latest Analyst Ratings

Posted-In: Sterne AgeeAnalyst Color Initiation Analyst Ratings

 

Related Articles (KBH)

View Comments and Join the Discussion!