KB Home downgraded to Market Perform from Outperform at Raymond James

Raymond James analyst Buck Horne downgraded KB Home (KBH) to Market Perform from Outperform without a price target The firm cites the company’s “disappointing” Q4 report for the downgrade. Raymond James sees near-term risks while KB pivots back to a primarily build-to-order operating strategy. At a time when the company’s entry-level competitors are aggressively clearing spec inventory with mortgage rate buydowns, KB may be “unilaterally disarming,” the analyst tells investors in a research note.