KB Home Price Target Raised to $63 as BofA Warns of 2026 Pressures
On January 16, BofA raised its price target on KB Home to $63 from $58 and maintained a Neutral rating, citing expected 2026 pressures from weak employment, migration trends, persistent inflation and elevated inventories in the homebuilding sector. Despite these headwinds, KB Home reported fiscal 2025 revenues exceeding $6.2 billion and net income near $430 million, supporting a 10% increase in book value per share.
1. BofA Raises Price Target to $63
On January 16, BofA analyst Rafe Jadrosich increased KB Home’s price target to $63 from $58 while maintaining a Neutral rating, highlighting that homebuilder stocks have rallied year-to-date despite underperformance in 2025.
2. KB Home Delivers Solid Fiscal 2025 Results
KB Home reported over $6.2 billion in revenues and nearly $430 million in net income for fiscal 2025, driving a 10% increase in book value per share through disciplined execution and balance sheet strength.
3. 2026 Sector Challenges and Outlook
BofA expects 2026 fundamentals to face pressure from subdued employment and migration trends, ongoing inflation and heightened competition driven by elevated new and resale inventory, framing next year as a reset year for homebuilders.