KB Home (KBH) Attributes 4Q Miss to Inclement Weather - FBR Capital Cuts PT to $11.50

FBR Capital maintained a Market Perform rating on KB Home (NYSE: KBH), and cut the price target to $11.50 (from $16.00), following the company's 4Q earnings This was a disappointing quarter for KB Home, as the company missed Street expectations for new orders, deliveries, and gross margins; but it did realize better-than-anticipated average selling price and backlog. The company attributed these shortcomings to inclement weather and slowed cycle times.

Analyst Patrick Kealey commented, "We reiterate our Market Perform rating on KBH but lower our price target to $11.50, from $16, as well as our FY16 expectations, following the release of KB Home's 4Q15 results. This quarter's sales results fell shy of both our and KB's expectations, which also weighed on gross margin results in the quarter. KB stands to likely benefit from its business initiatives in 2016; however, we think the company will be more reliant on increases in the sales pace to grow the top line, given expectations of flat YOY community count. We continue to believe KB should benefit from a steadily improving housing market (like the rest of the sector), but we think that other names in the space present a more compelling opportunity at the moment."

For an analyst ratings summary and ratings history on KB Home click here. For more ratings news on KB Home click here.

Shares of KB Home closed at $10.05 yesterday.

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