KB Home (KBH +1%) suffers only a brief dip before recovering with the general market this...

|About: KB Home (KBH)|By:, SA News Editor

KB Home (KBH +1%) suffers only a brief dip before recovering with the general market this morning, following a downgrade to Sell by Citigroup on valuation. Citi says the company is over-leveraged relative to its peers, and will likely need to raise capital to reduce its interest drag and scale up inventory. Separately, it ups Lennar (LEN +0.8%) to Neutral from sell, citing cautious optimism over a bump in housing starts.