Compass Point Research & Trading upgraded KB Home KBH from Sell to Neutral and increased its price target from $13.50 to $15.50 in a report issued Monday.
The upgrade from analysts Wilkes Graham and Megan Dunleavy followed "its underperformance and its focus on lower price points."
Overall, the analysts updated their "valuation framework for the home builder sector in front of the seasonal Hope Trade (November 21st- February 6th) as disappointing housing metrics and home builder stock performance YTD have set the sector up well for the seasonal rally, this time fueled by hopes for expanding credit."
The expectation for the Hope Trade to play out this year resulted in upgrades for other homebuilders including Hovnanian Enterprises Inc. and D.R. Horton Inc.
KB Home recently traded at $13.93, down 1.07 percent.
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