KB Home (KBH)

[Zephyr]

14:17:31 Today KBH KB Home upgraded at Raymond James; shares rise


BOSTON (MarketWatch) -- KB Home shares were up about 2% in afternoon trading
Tuesday after Raymond James boosted its rating on the home builder to outperform
from market perform. "The primary catalyst behind our action stems from last
week's important FHA announcement, but we also feel a more constructive outlook
is warranted based on valuation and several positive trends that emerged from
recent [fiscal fourth-quarter] results," the analysts said in a note. Policy
changes announced last week by the Federal Housing Administration "will initially
have a minimal impact on the up-front costs and monthly payments associated with
FHA loans," they said. "Thus for the time being, this vital financing lifeline
will remain widely available during the 2010 spring selling season. While
beneficial to all builders, we believe KB Home in particular stands to benefit
the most with its industry-leading mix of first-time buyers and FHA loan
underwriting."