The firm has a price target on the shares between $14 and $18, the Fly reports.
Wells Fargo also initiated coverage of several other names in the housing industry today, including homebuilders Toll Brothers (TOL), DR Horton (DHI), Lennar (LEN) and PulteGroup (PHM), CNBC notes.
KB Home is a Los Angeles-based home manufacturer and retailer for primarily first-time, move-up and active adult buyers.
Separately, TheStreet Ratings objectively rated KB Home stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, increase in stock price during the past year, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: KBH