KB Home downgraded to Underperform from Sector Perform at RBC Capital

RBC Capital downgraded KB Home to Underperform from Sector Perform with an unchanged price target of $70. The firm’s pricing showed another month of weaker relative trends for KB. The analyst sees a more negative near-term risk/reward skew for the shares following the 20% rally over the past two months. This is in-light of broader housing macro data remaining soft despite recent rate relief, which presents increased risk to numbers, particularly for orders looking into year-end, the analyst tells investors in a research note.