KB Home (KBH) Price Target Cut is Due to High Rates, Says Jim Cramer

Group 1 - KB Home (NYSE:KBH) has experienced a decline of 2.5% over the past year, but shares are up 9% year-to-date [2] - Following KB Home's fiscal fourth quarter earnings, shares dipped by 10%, and the fiscal 2026 revenue guidance of $5.10 billion to $6.10 billion is below the 2025 revenue of $6.21 billion [2] - Wolfe Research has cut KB Home's share price target to $56 from $63 and maintained an Underperform rating, citing potential drops in gross margins for fiscal year 2026 [2] - UBS has also reduced its price target for KB Home to $77 from $83 while keeping a Buy rating and lowering EPS estimates for upcoming fiscal years [2] Group 2 - Jim Cramer highlighted the impact of high-interest rates on KB Home, indicating that the housing market is struggling due to these elevated rates [4] - Cramer noted that starter homes are not gaining traction in the current market environment, which is affecting KB Home's performance [4] - Despite acknowledging KB Home's potential, there is a belief that certain AI stocks may offer better returns with limited downside risk compared to KB Home [4]