KBH - JPMorgan upgrades KB Home downgrades LGI Homes; still positive on sector

KB Homes (KBH) gains 2.6% in premarket trading after JPMorgan analyst Michael Rehaut upgrades the stock to Neutral, following its relative underperformance YTD.Though, he expects KBH's 2020 average order growth to lag those of its peers, Rehaut sees that reversing in 2021.Downgrades LGI Homes (LGIH) to Underweight after the stock's relative outperformance YTD. Rehaut sees LGIH continuing to "grow closings at a more moderate rate over the next several years than in the past."Remains positive on the homebuilder sector overall as "demand trends have remained fairly robust through October," Rehaut writes.See KBH's underperformance, LGIH's overperformance during the past year vs. ITB and S&P 500:

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JPMorgan upgrades KB Home, downgrades LGI Homes; still positive on sector