UPDATE: Deutsche Bank Lowers PT on KB Home to $12

Deutsche Bank is out with its report today on KB Home (NYSE: KBH), lowering its PT from $18 to $12.

In a note to clients, Deutsche Bank writes, "Throughout the housing crisis, there has been a strong relationship between price-to-book multiples and CDS implied default risk. Therefore, we view the decline in KB's share price as a corollary to its widened CDS spreads. We value KB Home at $12/share (down from $18). Our target price is derived by applying an 0.76x multiple on our 12-month forward book value estimate of $16.14."

Deutsche Bank maintains Hold on KBH.

At the time of posting, shares of KBH were trading pre-market at $9.95, up 1.74% from Thursday's close.