KB Home (KBH), the Los Angeles-based homebuilder, is gearing up to release its third-quarter earnings report on Tuesday, September 24th, after the market closes. Wall Street analysts are optimistic, projecting earnings per share to come in at $2.06, a notable increase from $1.80 reported in the same period last year. Revenue is expected to reach $1.73 billion, according to Benzinga Pro data.
Adding to the positive sentiment, the company recently announced a quarterly cash dividend of 25 cents per share for its common stock. However, KBH stock closed at $87.23 on Friday, down 2.7% for the day.
While the earnings forecast is encouraging, the recent stock dip and a mixed bag of analyst ratings paint a nuanced picture. Let’s delve into the recent analyst actions and see what they predict for KBH:
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B of A Securities:
Analyst Rafe Jadrosich maintained a Neutral rating on September 19th, raising the price target from $75 to $90. Jadrosich boasts a 72% accuracy rate, indicating a strong track record.*
Wedbush:
Analyst Jay McCanless reiterated a Neutral rating with a price target of $67 on September 12th. McCanless has an accuracy rate of 84%, suggesting a high level of confidence in their predictions.*
Wells Fargo:
Analyst Sam Reid kept an Equal-Weight rating on September 9th, raising the price target from $70 to $80. Reid has a strong accuracy rate of 85%, demonstrating a solid track record.*
RBC Capital:
Analyst Mike Dahl took a bearish stance, downgrading the stock from Sector Perform to Underperform on September 5th. Dahl’s price target is set at $70, and their accuracy rate stands at 74%.*
Goldman Sachs:
Analyst Susan Maklari kept a Neutral rating on September 3rd, increasing the price target from $72 to $82. Maklari’s accuracy rate is 63%.The divergence in analyst opinions highlights the uncertainty surrounding KBH’s future. While some see potential for growth, others are more cautious. Investors looking to make a decision on KBH stock should carefully consider these varied perspectives before making any investment choices.
