Homebuilder KB Home (NYSE: KBH) is seeing recovery in key markets and better pricing, leading RBC to upgrade the stock.
RBC’s Mike Dahl upgraded KBH from Sector Perform to Outperform and raised the price target from $25 to $30.
With signs of recovery in key Western U.S. markets, growing orders and the company’s ability to get better prices, KB Home is set for better margins in the second half of the fiscal year, Dahl wrote in an upgrade note. KB Home officials said they expected as much when they reported first-quarter earnings back at the end of March.
The stock is also trading at a low value despite a solid year-to-date rally, Dahl said.
KH Home is one of the larger homebuilders in the country, with about $4.5 billion in revenue in 2018 and more than 11,000 closings. It has a strong market in California, where the real estate market is starting to see some recovery from recent slowness.
KB Home stock was trading up 2.7 percent Thursday morning at $27.54 per share.
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|May 2019||Upgrades||Sector Perform||Outperform|
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