Goldman Sachs Starts KB Home (KBH) at Neutral

Goldman Sachs initiates coverage on KB Home (NYSE: KBH) with a Neutral. PT $20.00.

The analyst comments, "The company is in an operational turnaround that began during 2Q2012, and it has plenty of room for order growth in 2013. Further, the company has focused on price increases vs. volumes (like most other peers) â a strategy we view positively during the initial years of recovery. We believe the company has good access to capital, with capital raises and revolving credit agreements in January 2013, and should benefit from its deepening ties with its mortgage service partner (Nationstar). However, the company is one of the more expensive on 2014E EPS and we also prefer builders with an exposure to the high-end buyer vs. KB Homeâs 60% exposure to the first-time buyer."

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 $19.82 yesterday, with a 52 week range of $7.80-$25.14.

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