KB Home (NYSE:KBH) Price Target Cut to $56.00 by Analysts at The Goldman Sachs Group

Key Points

• The Goldman Sachs Group cut KB Home's price target to $56 from $65 and maintained a "neutral" rating, implying roughly a 9% upside from the stock's current level.
• KB Home's Q1 results showed EPS of $0.52 (vs. ~$0.53 consensus) and revenue of $1.08 billion, down about 22.6% year‑over‑year, prompting management to lower full‑year revenue guidance and the stock to trade down to about $51.26.
• Several brokers also trimmed targets or downgraded the stock (e.g., Wells Fargo and JPMorgan to $50), leaving an aggregate analyst view of "Hold" with an average price target near $59.50.

KB Home (NYSE:KBH - Get Free Report) had its target price reduced by research analysts at The Goldman Sachs Group from $65.00 to $56.00 in a report issued on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the construction company's stock. The Goldman Sachs Group's target price points to a potential upside of 9.25% from the stock's current price.

A number of other research analysts have also weighed in on the company. Royal Bank Of Canada reduced their target price on KB Home from $54.00 to $53.00 and set a "sector perform" rating for the company in a report on Wednesday. Raymond James Financial downgraded shares of KB Home from an "outperform" rating to a "market perform" rating in a report on Wednesday, December 24th. Wells Fargo & Company decreased their target price on shares of KB Home from $55.00 to $50.00 and set an "underweight" rating on the stock in a report on Wednesday. Barclays lowered their target price on shares of KB Home from $62.00 to $56.00 and set an "overweight" rating on the stock in a research note on Wednesday. Finally, JPMorgan Chase & Co. reduced their price target on shares of KB Home from $71.00 to $50.00 and set a "neutral" rating for the company in a research report on Monday, December 29th. Three research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, KB Home has an average rating of "Hold" and an average price target of $59.50.

KB Home Stock Performance

Shares of NYSE:KBH traded down $1.68 during trading on Wednesday, hitting $51.26. 1,421,738 shares of the company were exchanged, compared to its average volume of 1,146,704. KB Home has a 52-week low of $48.90 and a 52-week high of $68.71. The stock has a 50 day moving average of $59.74 and a 200 day moving average of $61.07. The company has a debt-to-equity ratio of 0.43, a current ratio of 5.77 and a quick ratio of 0.53. The company has a market cap of $3.24 billion, a PE ratio of 10.41, a P/E/G ratio of 7.07 and a beta of 1.47.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly earnings results on Tuesday, March 24th. The construction company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.01). KB Home had a net margin of 6.88% and a return on equity of 11.40%. The company had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.10 billion. During the same quarter last year, the firm posted $1.49 earnings per share. KB Home's revenue for the quarter was down 22.6% compared to the same quarter last year. As a group, equities research analysts predict that KB Home will post 8.42 EPS for the current year.

Hedge Funds Weigh In On KB Home

A number of institutional investors have recently made changes to their positions in KBH. SG Americas Securities LLC increased its stake in KB Home by 204.8% in the third quarter. SG Americas Securities LLC now owns 69,078 shares of the construction company's stock valued at $4,396,000 after acquiring an additional 46,415 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new stake in KB Home during the third quarter worth about $1,551,000. Deprince Race & Zollo Inc. purchased a new position in shares of KB Home in the 3rd quarter worth about $59,301,000. Strs Ohio boosted its holdings in shares of KB Home by 1,788.1% in the 3rd quarter. Strs Ohio now owns 79,300 shares of the construction company's stock worth $5,047,000 after purchasing an additional 75,100 shares in the last quarter. Finally, iSAM Funds UK Ltd bought a new position in shares of KB Home during the 3rd quarter valued at about $1,451,000. Institutional investors own 96.09% of the company's stock.

KB Home News Roundup

Here are the key news stories impacting KB Home this week:

• Positive Sentiment: Management announced a strategic shift to target ~70% built‑to‑order deliveries to improve H2 2026 margins — a structural move that could protect profitability if demand stabilizes. Built‑to‑order shift
• Positive Sentiment: UBS cut its price target (from $71 to $63) but maintained a Buy rating — implying material upside vs. the current price and signaling some analysts view the pullback as a buying opportunity. UBS PT note
• Positive Sentiment: Citizens initiated coverage with an Outperform / $77 target, adding a bullish analyst view and upside scenario to the stock narrative. Citizens initiation
• Neutral Sentiment: Reported EPS roughly met expectations ($0.52 vs ~$0.53 consensus), which limits downside from the bottom line but didn’t offset top‑line weakness. Zacks earnings summary
• Neutral Sentiment: Company repurchased $50M of common stock during the quarter — a modest buyback that supports per‑share metrics but is limited in size. PR Newswire release
• Negative Sentiment: Revenue and orders were notably weaker — Q1 revenue fell ~23% Y/Y and missed estimates; management cut full‑year revenue guidance, which directly pressures near‑term EPS growth expectations. Revenue miss & guidance cut
• Negative Sentiment: CEO said the Middle East war is already weighing on buyer psychology, and management explicitly tied weaker demand to geopolitical uncertainty — a near‑term demand headwind. CEO comments
• Negative Sentiment: Several brokers cut price targets and/or downgraded the stock (Wells Fargo lowered to $50 and kept a Sell; Truist, RBC, BofA and others trimmed targets), increasing sell‑side caution and weighing on the share price. Analyst revisions
• Negative Sentiment: Market reaction: multiple outlets report the stock trading down after the earnings release and guidance cut — investors are marking down valuation near term while awaiting clearer demand stabilization. Market reaction

About KB Home

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation's largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.

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