KB Home initiated with a Perform at Oppenheimer

Oppenheimer initiated coverage of KB Home (KBH) with a Perform rating and no price target The firm likes the company’s land strategy and thinks its build-to-order model has advantages over the long term. However, KB’s market footprint and new approach regarding price over incentives are disadvantages in the current market, the analyst tells investors in a research note. It believes the company’s “muted” growth outlook creates a balanced risk/reward for the shares.