KB Home price target lowered to $56 from $65 at Goldman Sachs

Goldman Sachs analyst Susan Maklari lowered the firm’s price target on KB Home (KBH) to $56 from $65 and keeps a Neutral rating on the shares. Management highlighted a shift to build-to-order sales, expected to exceed 70% of second-half deliveries versus 44% in October, which should improve margin visibility and leverage over time, the analyst tells investors in a research note. Near-term, FY26 closings guidance was lowered by 1,000 units amid macro uncertainty, with recent order slowdowns driven by Middle East conflict and rising rates, pushing a back-half-weighted outlook and leaving the stock likely range-bound until evidence emerges of Q3/Q4 delivery and margin expansion, the firm says.