Citizens JMP Securities has suggested that KB Home could gain as the homebuilder shifts its corporate strategy towards more profitable build-to-order houses. The bank began research coverage of the company with a market outperform rating and a 12-month price target of $77, suggesting a 45% upside. The company had previously focused more heavily on BTO construction than speculative homes, but shifted its focus away from spec homes during the Covid-19 pandemic. Other potential tailenders include a potential rebound in gross profit margins for the fiscal year ending Nov. 30, 2027.