UPDATE: Topeka Capital Markets Initiates KB Home at Hold on Macro Caution

Topeka Capital Markets initiated coverage on KB Home

with a Hold rating and a $17 price target. Topeka Capital Markets said, "We are initiating coverage with a Hold and a $17 price target. KB Home has outlined a plan to profitability, but we remain concerned that restrictive mortgage financing for entry-level buyers, which we believe accounts for 70% of KBH's business, may delay the timing of that plan. Beyond the potential macroeconomic catalysts, we do not see another pending catalyst for the name, and as a result, we view the shares as fairly valued at current levels." KB Home closed at $14.17 on Thursday.