Update shared on26 Sep 2025
Fair value Increased 3.80%Driven by better-than-expected Q3 earnings, disciplined cost management, and increased investor optimism around interest rate trends despite ongoing housing demand challenges, the consensus analyst price target for KB Home has been raised from $63.58 to $66.00.
Analyst Commentary
- Better-than-expected Q3 earnings and disciplined cost management are driving increased confidence in KB Home's near-term performance.
- Bullish analysts see signs of a bottom forming in the company's fundamentals, providing optimism for recovery.
- Aggressive fixed cost reductions and share buybacks are helping to offset concerns over lower order volumes and homebuilding revenues.
- Recent price target increases reflect rising investor optimism around interest rate trends and industry-wide revaluation of homebuilders.
- Ongoing challenges remain due to tepid housing demand, with some analysts noting skepticism that recent monetary policy changes will rapidly alter market trends.
What's in the News
- KB Home issued Q4 2025 guidance: housing revenues expected between $1.6–$1.7 billion with average selling price of $465,000–$475,000; full-year 2025 revenues expected at $6.1–$6.2 billion with average selling price of $483,000.
- Completed repurchase of 11.7 million shares (16.3% of shares outstanding) for $738.5 million under its buyback program.
- Announced numerous new community openings across the US, expanding in key markets including California, Nevada, Texas, Arizona, Colorado, Washington, and Florida, emphasizing personalization, energy efficiency, and customer satisfaction.
- Dropped from multiple major Russell growth indices, including Russell 2000 Growth, Russell 2500 Growth, and Russell 3000 Growth.
- Partnered with Berkshire Hathaway HomeServices California Properties to lead sales and marketing for the final homes at Ridgeview in north San Diego County, highlighting luxury and energy-efficient features.
Valuation Changes
Summary of Valuation Changes for KB Home
- The Consensus Analyst Price Target has risen slightly from $63.58 to $66.00.
- The Consensus Revenue Growth forecasts for KB Home has significantly fallen from -3.3% per annum to -4.2% per annum.
- The Future P/E for KB Home has significantly risen from 10.32x to 11.59x.
Disclaimer
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