
KB Home (KBH) Stock Forecast & Price Target
KB Home (KBH) Analyst Ratings
Bulls say
KB Home's positive outlook is supported by the expectation of stronger-than-anticipated demand leading to increased sales volumes and elevated pricing, positioning the company for outsized earnings growth. The company's regional mix is deemed more favorable than competitors, with rising closings and consistent gross margin guidance suggesting stability in its operational performance. Furthermore, anticipated increases in unit guidance for FY25, alongside potential upside from improved affordability and margins, bolsters KB Home's growth prospects in the residential construction market.
Bears say
The outlook for KB Home's stock is negatively influenced by several fundamental factors as highlighted in the financial reports. The company's estimated Return on Tangible Equity (ROTE) for FY'25 has decreased to 14.5%, reflecting heightened risks associated with potential order and revenue downturns, particularly as EPS projections for FY'26 fall below consensus estimates. Additional concerns include a slowdown in the housing market, declining consumer demand in California—where over a third of revenue is derived—and rising mortgage rates which adversely affect entry-level home sales, adding pressure to gross margins due to increased land costs and limited growth opportunities in core markets.
This aggregate rating is based on analysts' research of KB Home and is not a guaranteed prediction by Public.com or investment advice.
KB Home (KBH) Analyst Forecast & Price Prediction
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