KB Home downgraded to Underweight from Overweight at JPMorgan

JPMorgan analyst Michael Rehaut double downgraded KB Home to Underweight from Overweight with a price target of $32.50, down from $36. The analyst remains positive on the homebuilders for 2023, but at the same time, believes fundamentals "may go sideways if not soften somewhat" over the next quarter or so as the housing market absorbs the past month’s roughly 70 basis point increase in mortgage rates. As a result, JPMorgan is tempering its enthusiasm for the stocks over the next few months. It anticipates some moderation in demand trends over the coming months following the recent move in rates.