KB Home Faces Downgrade Amid Increasing Market Competition And Price Cuts; Analyst Slashes Estimates
Portfolio Pulse from Lekha Gupta
Wedbush analyst Jay McCanless downgraded KB Home (NYSE:KBH) to Neutral from Outperform, maintaining a price target of $55. The downgrade reflects increased competition and a higher percentage of builders cutting home prices, as reported by the NAHB. Despite maintaining FY23 and FY24 volume estimates for KBH, McCanless sees more downside risk and has lowered EPS estimates for both years, citing competitive discounting and mortgage rate buydowns. KBH's Q3 FY23 sales outperformed consensus, but shares are down 1.15%.
November 20, 2023 | 7:33 pm
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NEGATIVE IMPACT
KB Home downgraded by Wedbush analyst to Neutral with maintained price target of $55. EPS estimates for FY23 and FY24 reduced due to market competition and price cuts. Shares trading down 1.15%.
The downgrade by a Wedbush analyst, along with reduced EPS estimates, reflects a negative outlook on KB Home's financial performance due to increased market competition and price cuts. This news is likely to influence investor sentiment and could lead to a short-term decline in KBH's stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100