Only 10 days after being upgraded to neutral by Credit Suisse analyst Daniel Oppenheim, it was once again boosted by the analyst, this time to outperform. Oppenheim said he expects orders at the home builder to trend higher in the second half of the year.
As a result, shares of the company soared 10% to $12.52 in afternoon trading, before closing at $12.44.
And KB Home comes cheap. Since Oppenheim upgraded the company on June 29, the stock has lost about 12% and is off about 35% since the beginning of May.
KB's smaller, cheaper homes aimed at first-time buyers, called "Open Series," should help new home orders grow 44% in the third quarter and 58% in the last three months of the year, he wrote.
In the second quarter new home orders grew 59% from the first quarter, but were down 31% compared with the same time last year.
Separately, KB declared a quarterly cash dividend of 6 cents a share, payable on Aug. 20 to stockholders of record on Aug. 6.
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