Citi Maintains Hold on KB Home

Citi is out with its report today on KB Home (NYSE: KBH), maintaining Hold.

In a note to clients, Citi writes, "When thinking about KBH, we note that there are no free lunches and that there are costs associated both with the company doing nothing as well as with it tapping the capital markets to improve its liquidity. Any equity valuation and earnings model needs to reflect the costs associated with at least one of these alternatives."

Citi maintains an $11 PT on KBH.

Shares of KBH closed Friday at $10.17, up 3.99% from Thursday's close.