KB Home's stock fell by 5.99% as it hit a 5-day low, reflecting ongoing challenges in the housing market.
This decline comes amid broader market strength, with the Nasdaq-100 up 0.76% and the S&P 500 up 0.20%. The company's fourth-quarter revenue of $1.69 billion represented a 10% decline year-over-year, driven by low consumer confidence and high mortgage rates, which have impacted home deliveries and overall performance. Despite these challenges, KB Home's commitment to shareholder returns and financial flexibility remains strong.
The implications of this revenue decline suggest that while the broader market is performing well, KB Home faces significant headwinds in the housing sector, which could affect its future growth and stock performance.
Wall Street analysts forecast KBH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KBH is 58.38 USD with a low forecast of 50.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
Wall Street analysts forecast KBH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KBH is 58.38 USD with a low forecast of 50.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
6 Hold
1 Sell
Hold
Current: 57.950
Low
50.00
Averages
58.38
High
71.00
Current: 57.950
Low
50.00
Averages
58.38
High
71.00
BofA
Rafe Jadrosich
Neutral
maintain
$58 -> $63
2026-01-16
Reason
BofA
Rafe Jadrosich
Price Target
$58 -> $63
AI Analysis
2026-01-16
maintain
Neutral
Reason
BofA analyst Rafe Jadrosich raised the firm's price target on KB Home to $63 from $58 and keeps a Neutral rating on the shares. After underperforming the market in 2025, homebuilder stocks have rallied sharply year-to-date, but the firm believes weaker employment and migration trends, ongoing inflation and a more competitive selling environment driven by elevated new and resale inventory will pressure fundamentals through 2026 and make it a "reset year for homebuilders," the analyst tells investors in a year ahead note on the group.
UBS
Buy
maintain
$77 -> $71
2026-01-06
Reason
UBS
Price Target
$77 -> $71
2026-01-06
maintain
Buy
Reason
UBS lowered the firm's price target on KB Home to $71 from $77 and keeps a Buy rating on the shares. UBS believes 2026 is poised to be a better year for homebuilding, as builders have moderated production, helping to stabilize/reduce inventory in certain key markets, while overall housing supply remains constrained relative to history, the analyst tells investors in a research note. The firm thinks incremental improvement in the macro could catalyze sentiment and the stocks.
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JPMorgan
Michael Rehaut
Neutral
downgrade
$71 -> $50
2025-12-29
Reason
JPMorgan
Michael Rehaut
Price Target
$71 -> $50
2025-12-29
downgrade
Neutral
Reason
JPMorgan analyst Michael Rehaut lowered the firm's price target on KB Home to $50 from $71 and keeps a Neutral rating on the shares. The firm reduced KB's 2026 and 2027 earnings estimates following the fiscal Q4 report. JPMorgan estimates the company's fiscal 2026 return on equity at 6%, down from 11% in 2025 and well below KB's cost of capital.
Raymond James
Buck Horne
Outperform -> Market Perform
downgrade
2025-12-24
Reason
Raymond James
Buck Horne
Price Target
2025-12-24
downgrade
Outperform -> Market Perform
Reason
Raymond James analyst Buck Horne downgraded KB Home to Market Perform from Outperform without a price target. The firm cites the company's "disappointing" Q4 report for the downgrade. Raymond James sees near-term risks while KB pivots back to a primarily build-to-order operating strategy. At a time when the company's entry-level competitors are aggressively clearing spec inventory with mortgage rate buydowns, KB may be "unilaterally disarming," the analyst tells investors in a research note.
About KBH
KB Home is a homebuilding company, which builds a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed primarily for first-time and first move-up, as well as second move-up and active adult homebuyers. It offers homes in development communities, in urban in-fill locations and as part of mixed-use projects. The Company's segments include homebuilding and financial services. The homebuilding segment is engaged in the acquisition and development of land primarily for residential purposes. The financial services segment offers various insurance products to its homebuyers in the markets where the Company builds homes and provides title services in certain of those markets. Its financial services also provide mortgage banking services, including residential consumer mortgage loan originations, to its homebuyers indirectly through KBHS Home Loans, LLC, an unconsolidated joint venture between the Company and a third party.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
