UPDATE: J.P. Morgan Lowers PT on KB Home Following 3Q Conference Call

In a report published Thursday, J.P. Morgan analyst Michael Rehaut reiterated an Overweight rating on

, but lowered the price target from $26.00 to $24.00. In the report, J.P. Morgan noted, “We rate KBH Overweight relative to its peers amid our positive sector stance, as we believe the stock – trading at 1.2x P/B (ex-adjusted FAS 109 charges) vs. our universe average of 1.5x as well as 5.4x our 2016 Earnings Power versus our universe average of 6.0x – does not fully reflect our outlook for the company to generate positive EPS in FY13 as well as for continued gross margin expansion over the next 4-6 quarters.” KB Home closed on Wednesday at $18.10.