Barclays lowered the firm’s price target on KB Home (KBH) to $49 from $56 and keeps an Equal Weight rating on the shares. The company’s Q2 orders down 13%, below the consensus of down 5%, with a revenue and margin guidance cut leading to sharp earnings estimate cuts, the analyst tells investors in a research note. The firm says KB is leaning on price reductions to drive buyer traffic. It cites a “much softer” gross margin outlook coupled with a declining backlog that should pressure 2026 deliveries for the target cut.
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Read More on KBH:
- KB Home price target lowered to $80 from $86 at UBS
- KB Home price target lowered to $54 from $58 at BofA
- KB Home price target lowered to $52 from $53 at Wells Fargo
- Hold Rating on KB Home Amid Lowered Guidance and Cautious Outlook
- Challenging Outlook for KB Home: Sell Rating Amid Revenue and Delivery Concerns