KB Home price target raised to $52 from $37 at RBC Capital

RBC Capital analyst Mike Dahl raised the firm’s price target on KB Home (KBH) to $52 from $37 but keeps a Sector Perform rating on the shares after its Q2 results. Demand remains healthy, resulting in a solid order beat and guide, but margins are still drifting lower through Q3 outlook, with the Q3 guide more muted relative to Lennar (LEN), the analyst tells investors in a research note. The firm adds that it sees a more attractive risk/reward among SMID cap builders relative to KB Home.