KeyBanc Starts TopBuild Corp (BLD) at Overweight

KeyBanc initiated coverage on TopBuild Corp (NYSE: BLD) with an Overweight rating and a price target of $36. Analyst Kenneth R. Zener is positive on the company's exposure to new housing activity.

"We initiate on TopBuild Corp (BLD) with an Overweight rating based on: 1) its 70% exposure to new housing activity (35% market share) delivering ~$0.15 in EPS on each 50K change in housing starts; 2) likely positive price (3% in FY14 in installation) which should lift EBIT leverage above 20%; and 3) increased Residential R&R/Commercial sales lessen its cyclical exposure to new housing. Our $36 price target offers investors an attractive risk/reward on the back of a positive cyclical backdrop and execution," said Zener.

For an analyst ratings summary and ratings history on TopBuild Corp click here. For more ratings news on TopBuild Corp click here.

Shares of TopBuild Corp closed at $31.11 yesterday.

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