BTIG analyst Carl Reichardt has maintained their neutral stance on KBH stock, giving a Hold rating yesterday.
Carl Reichardt has given his Hold rating due to a combination of factors impacting KB Home’s financial performance and market conditions. The company’s earnings per share for the first quarter of 2025 fell short of expectations, primarily due to lower delivery volumes and higher selling, general, and administrative expenses. Additionally, the average selling price was slightly below projections, although this was partially offset by a lower tax rate.
The demand for KB Home’s products has been muted, with a notable decline in orders, prompting the company to reduce its guidance for fiscal year 2025. Despite some positive response to price cuts, the overall market environment remains challenging, with macroeconomic uncertainties and affordability issues affecting buyer behavior. Furthermore, the company’s community count growth was slightly below expectations, and absorption rates fell significantly. These factors, combined with the need for strategic pricing adjustments, have led to a cautious outlook, justifying the Hold rating.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $76.00 price target.
KBH’s price has also changed moderately for the past six months – from $82.750 to $58.570, which is a -29.22% drop .