Raymond James analyst Buck Horne downgraded KB Home (KBH) to Underperform from Market Perform ahead of the company's earnings report in a move to highlight his increased near-term caution with the homebuilding sector. In a research note to investors, Horne cites factors including above-average cyclical valuations amid declining earnings estimates across the industry, softening macro-economic data points and indicators of a late-cycle shift, and an analysis of recent MSA-level re-sale market statistics suggesting competitive inventory remains elevated into summer for the downgrade. Horne also downgraded Lennar (LEN) to Market Perform from Outperform.