UPDATE: Compass Points Upgrades KB Homes to Neutral on Reduced Risk Profile
Compass Points upgraded KB Homes (NYSE: KBH) from Sell to Neutral and raised the price target from $10.00 to $20.50.
Compass Points commented, "Following an impressive common equity and convertible notes offering, we do not believe our prior concerns regarding KBH's liquidity position are warranted. Furthermore, while issues with homebuilding margin still exist, the dramatic rise in 4Q12 ASP suggests that KBH is successfully executing on its mix shift strategy and selling more expensive homes to move-up buyers and high quality first time buyers. Our Neutral rating and price target increase reflects our belief that KBH will continue to improve its earnings power and reduce leverage, though the company still has work to do to fully shift its product offering up the price point scale and away from first-time home buyers."
KB Homes closed at $18.10 on Monday.
Latest Ratings for KBH
|Feb 2017||BTIG Research||Initiates Coverage On||Sell|
|Jan 2017||Raymond James||Downgrades||Market Perform||Underperform|
|Jan 2017||Evercore ISI Group||Downgrades||Hold||Sell|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.