The firm also increased 2015 earnings estimates to $0.89 per share from $0.77, and raised 2016 earnings estimates to $1.12 from $0.94 per share.
"While margins will continue to lag peers, we think continued achievement of performance consistent with stated operating goals can help build credibility and reduce the valuation gap," analysts at Credit Suisse said.
Additionally, the firm raised revenues estimates to $3.13 billion in 2015 from $2.96 billion, and increased 2016 revenues estimates to $3.41 billion from $2.96 billion.
KB Home is a homebuilding company that constructs and sells homes through five operating divisions including four homebuilding segments and one financial services segment.
Separately, TheStreet Ratings team rates KB HOME as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KB HOME (KBH) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income."