KB Home price target lowered to $60 from $85 at Barclays

Barclays analyst Matthew Bouley lowered the firm’s price target on KB Home (KBH) to $60 from $85 and keeps an Equal Weight rating on the shares. The firm says that while the company’s results were below consensus estimates on margins and selling prices, the print “was not as bad as investors may have been fearing” given orders that came in ahead of consensus while the guide-down on gross margin “was not severe.” However, Barclays reminds investors that it takes time for a softening market to show in builder results. While the stock could see a initial relief rally, any rally will be short-lived as the market digests potential further risk to the model in 2025, the analyst tells investors in a research note.