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UPDATE: Sterne Agee Initiates KB Home at Neutral on Valuation

Related KBH
Buckingham Initiates Coverage On Several Homebuilders
Compass Point Research Offers 'The Home Builder Hope Trade'
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.

Latest Ratings for KBH

DateFirmActionFromTo
Oct 2014Buckingham ResearchInitiates Coverage onBuy
Oct 2014BarclaysMaintainsUnderweight
Oct 2014Compass PointUpgradesSellNeutral

View More Analyst Ratings for KBH
View the Latest Analyst Ratings

Posted-In: Sterne AgeeAnalyst Color Initiation Analyst Ratings

 

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