Analyst Says KB Home (KBH) Has More Upside – Here’s Why

Published on October 16, 2025 at 4:09 am by Fahad Saleem in News

We recently published 10 Stocks Moving On Key Analyst Calls. KB Home (NYSE:KBH) is one of the stocks analysts were recently talking about.

John Lovallo, UBS homebuilders and building products analyst, said in a recent program on CNBC that KB Home (NYSE: KBH) posted a “really good” quarter as the company beat on “all KPIs”. He believes the stock has 30% upside amid the Fed’s rate cuts.

One, KB Home (NYSE: KBH) put up a really good quarter yesterday. They beat on all KPIs, you know, deliveries, revenue, gross margin, operating margin, EPS, orders. Now, they did take their forecast down slightly, but importantly, they noted stabilization across the broad housing market and particularly in markets that are very important like Florida and Texas. This is critical. And I would say on top of that, I think it’s becoming increasingly clear to us that the cut that they made and the cut that Lennar made to their estimates is the final cut. And I think that that’s very powerful. I think a bottomist sight is insight. Now KB tends to buy actually reduce the price of their home as opposed to using the buy downs. Other builders use buyowns, but the point’s the same. If you can actually stabilize that pricing. Very powerful.”