UPDATE: Susquehanna Upgrades KB Home on Fundamental Trends, Seasonal Tailwinds

In a report published Friday, Susquehanna International Group analyst Jack Micenko upgraded the rating on

from Neutral to Positive, and raised the price target from $20.00 to $22.00. In the report, Susquehanna International Group noted, “Fundamentally, homebuilder traffic and orders have shown resilience in late Summer and early Fall. Rates have moved off highs, affordability remains strong, mortgage credit is getting looser, and home prices continue to move in the right direction. The builder stocks have been disproportionately punished in the past ten days on default concerns. Additionally, in each of the last six years, buying the homebuilder stocks before Thanksgiving and selling them on tax day has generated positive returns every year, at an average of 22.5% per season.” KB Home closed on Thursday at $16.63.