David Ristau
Growth at reasonable price, research analyst, newsletter provider, long/short equity

KB Home: Solid Upside Behind Major Catalyst

KB Homes (NYSE:KBH) is coming off a difficult year, which saw shares fluctuate between $16 and $25 in 2013, eventually settling on 11% gains for the year. While the company pledged to revamp its revenue stream by changing its geographical footprint, issues with unhappy customers from past constructions projects continued to haunt KBH. We believe the year 2014 will be more productive due to promising geographical shifts that will lead to both top and bottom line growth. At this time we rate KB Homes as a Buy opportunity, with a price target of $30.

Business Overview

West Coast

Southwest

Central

Southeast

Total

Homes Delivered

2179

738

2841

1387

7145

Revenue

$1020.2

$175.3

$565.1

$324.4

2085.0

Data taken from...

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