UPDATE: Williams Financial Group Initiates KB Home at Hold

Williams Financial Group has published a research report on KB Home (NYSE: KBH) and has initiated coverage on the company with a Hold rating and $14 price target.

In the report, Williams Financial Group writes, "32% of total land inventory is mothballed and not expected to be realized within the next six years. $500 million in land spend expected in 2012. The company's heavy debt balance, short cash position, and anticipated land spend may place strain on the balance sheet if anticipated improvements fail to be realized."

KB Home is currently trading up $0.04 from Friday's $11.82 closing price.