UPDATE: Williams Financial Upgrades KB Home to Hold on 1Q Earnings Report

In a report published Monday, Williams Financial analyst David N. Williams upgraded the rating on KB Home

from Sell to Hold, and raised the price target from $11.00 to $22.00. In the report, Williams noted, “KB Home (KBH, Hold, $21.77) reported 1Q earnings beating the Streets top and bottom line expectations. Revenue of $405.2M and loss per share of $0.16 compares to the consensus estimates of $363.6M and loss per share of $0.21. The top line was primarily driven by a 24% increase in ASP and a 29% y/y increase in deliveries. The bottom line benefitted from a sharp decline in SG&A expense ratio, down 570 bps and a 680 bps improvement in gross margin.” KB Home closed on Friday at $21.77.