KB Home price target raised to $48 from $45 at UBS

UBS analyst John Lovallo raised the firm’s price target on KB Home to $48 from $45 and keeps a Buy rating on the shares following the Q1 results. UBS believes a slightly higher multiple is warranted given early signs of stabilizing home buyer sentiment and diminishing interest rate sticker shock, which should help support demand and potentially provide a catalyst for homebuilder stocks through the spring selling season, the analyst tells investors in a research note.