KBW cuts target for KB Home stock from USD 65 to USD 54

Published on 10/06/2026 at 06:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Revenue fell 20.00 percent to USD 1.30 billion in the third quarter. KB Home stock was USD 45.04 on October 5, 2026 versus USD 45.75 prior close.

KBH, US48666K1097, Illustration mit AI erstellt.

KB Home (ISIN US48666K1097) faces a lower analyst valuation after Keefe, Bruyette & Woods cut its price target from USD 65.00 to USD 54.00 on October 5, 2026, while keeping a Market Perform rating, according to Investing.com. The reduction followed KB Home's third-quarter results and reflects lower estimates for deliveries, average selling prices and gross margin. For investors, the key issue is whether pricing pressure eases before the company completes fiscal 2026.

Third-quarter revenue drops

KB Home reported USD 1.30 billion of revenue for the third quarter ended August 31, 2026, down 20.00 percent from USD 1.62 billion a year earlier, according to KB Home. Diluted earnings per share came in at USD 1.05, compared with USD 1.61 in the year-earlier quarter, while net income declined to USD 65.3 million from USD 109.8 million.

The operating pressure was visible in the housing gross profit margin, which narrowed to 16.5 percent from 18.2 percent. Homes delivered declined 19.00 percent to 2,732, but ending backlog increased 2.00 percent to 4,398 homes, giving the company a more stable order base for later periods.

Guidance keeps margins central

For the fourth quarter of fiscal 2026, KB Home guides to housing revenue of USD 1.45 billion to USD 1.65 billion and deliveries of 3,000 to 3,500 homes. Full-year housing revenue guidance stands at USD 4.90 billion to USD 5.10 billion, with a housing gross profit margin of 16.0 percent to 16.2 percent.

KBW's October 5, 2026 note reduced its 2027 and 2028 estimates by 15 percent, citing lower deliveries, a 2 percent lower average selling price and a 20 basis point reduction in gross margin, according to Investing.com. That combination explains why a better-than-expected earnings-per-share result did not prevent a lower valuation target.

KBH trades near yearly low

KBH was last quoted at USD 45.04 on the NYSE on October 5, 2026 at 4:00 p.m. ET, down 1.55 percent from USD 45.75. The quote sits only USD 1.01 above the 52-week low of USD 44.03 and remains USD 22.53 below the 52-week high of USD 67.57.