(Image source: cbsnews) KB Home (NYSE:KBH) shares are trading 4 percent higher this morning on an upgrade from Citigroup Inc (NYSE:C). Citi upgraded the homebuilder to neutral from sell as result of the stock underperforming the S&P 500 and improving earnings outlook for next year. The price target was raised from $13 to $17 a share. Last week, KB Home reported fourth quarter earnings that showed an 11 percent increase in the average selling price for their homes. In addition, profits for the quarter were substantially above the same period a year ago. With the housing market on a tear lately, KB Home will do a lot better next year.