KB Home (KBH) topped fiscal Q3 earnings estimates, but its Q4 outlook was below expectations amid weaker demand, BofA Securities said in a report Tuesday.
The report said KBH management attributed softer July and August to higher mortgage rates, weak consumer confidence and more elevated resale competition.
The note also said the company lowered its full year gross margin outlook and initiated Q4 margin below BofA expectations.
BofA reiterated its neutral rating while lowering its price target to $54 from $56 on weaker margin outlook.
Price: 48.48, Change: -0.11, Percent Change: -0.23
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