KB Home's FY24 Forecast Gets A Boost As High Orders Promise Stronger Closings, Credit Suisse Analyst Says
Portfolio Pulse from Shivani Kumaresan
Credit Suisse analyst Daniel Oppenheim has reiterated a Neutral rating on KB Home (NYSE:KBH) and raised the price target from $42 to $51. The analyst increased the FY23 EPS estimate to $6.60 and FY24 EPS estimate to $5.95 due to higher orders and stronger closings. Over 13,000 closings are expected in 2023, with key upside risk being a sharp reduction in mortgage rates and improved affordability.
June 22, 2023 | 6:43 pm
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Credit Suisse analyst raises KB Home's price target to $51 and increases FY23 and FY24 EPS estimates due to higher orders and stronger closings.
The news of Credit Suisse raising KB Home's price target and increasing EPS estimates for FY23 and FY24 is positive for the company. However, the analyst maintains a Neutral rating, indicating that the stock price may not see significant short-term movement. The key upside risk is a sharp reduction in mortgage rates and improved affordability, while downside risk comes from more significant land impairments than anticipated.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100