UPDATE - UBS Upgraded KB Home (KBH) to Neutral on Valuation

UPDATE - UBS upgraded KB Home (NYSE: KBH) from Sell to Neutral. PT cut $1 to $11.

UBS analyst said, "Reflecting investors’ optimism following its F4Q results and heading into the spring selling season, KBH +~44% from the end of Nov to the end of Jan, ahead of the +32% group avg. Since then the stock -44% (vs -14% for peers) as the selling season disappointed. Given this pullback, we believe KB’s current valuation appropriately reflects conditions; in turn, we are upgrading to Neutral."

"Given 1Q results, recent channel checks, and our view that KB will lag in the early stages of a recovery, we’re revising our EPS ests; F11E goes to ($1.10) from $0.20, F12 goes to $0.20 from $0.70. Fwd years have also been adjusted. In turn, our PT goes to $11, down from $12 previously, in line with the current valuation."

To see all upgrades/downgrades on shares of KBH, visit our Analyst Ratings page.

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