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Analyst: Homebuilding Stock Faces Stiff Competition
KBHKB Home(KBH) Schaeffers Investment Research·2024-10-07 14:17

KB Home (NYSE:KBH) is down 2.9% to trade at 79.42thismorning,afterWellsFargodowngradedthehomebuilderstockto"underperform"from"equalweight."TheanalystincoveragenotedKBHcouldlagitssectorcompetitorsin2025amidstructurallylowerEBITmargins.Theanalystdid,however,raiseitspricetargetto79.42 this morning, after Wells Fargo downgraded the homebuilder stock to "underperform" from "equal weight." The analyst in coverage noted KBH could lag its sector competitors in 2025 amid structurally lower EBIT margins.The analyst did, however, raise its price target to 83 from 80.Comingintotoday,themajorityofanalystswerealreadypessimistic,andthe12−monthaveragetargetpriceof80. Coming into today, the majority of analysts were already pessimistic, and the 12-month average target price of 84.92 is a 6.2% premium to the equity's current perch.KBH is now te ...