BofA Maintains Neutral Stance on KB Home (KBH) Amid 2026 Industry Pressures

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On January 16, BofA analyst Rafe Jadrosich raised the firm’s price target on KB Home (NYSE:KBH) to $63 from $58 while maintaining a Neutral rating on the shares. In a year-ahead note on the homebuilding group, the firm noted that while homebuilder stocks have rallied sharply year-to-date after underperforming in 2025, fundamentals are likely to face pressure through 2026. BofA expects weaker employment and migration trends, persistent inflation, and a more competitive selling environment driven by elevated new and resale inventory to make 2026 a “reset year” for the sector.

BofA Maintains Neutral Stance on KB Home (KBH) Amid 2026 Industry Pressures

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Despite these macro headwinds, KB Home (NYSE:KBH) delivered solid operating results in fiscal 2025. During its fourth-quarter earnings call, the company reported total revenues exceeding $6.2 billion for the year, along with nearly $430 million in net income. These results supported a 10% increase in book value per share, reflecting disciplined execution and balance sheet strength even amid a challenging housing backdrop.

Founded in 1957 as Kaufman & Broad, KB Home (NYSE:KBH) is a long-established American homebuilder headquartered in Los Angeles, California. The company focuses on building customizable homes across multiple U.S. markets, positioning it to benefit over the longer term from housing demand trends, even as near-term industry conditions remain mixed.

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