Deutsche Bank Reinstates Builders FirstSource (BLDR) at Buy

Deutsche Bank reinstated coverage on Builders FirstSource (NASDAQ: BLDR) with a Buy rating and a price target of $20.

Analyst Rob Hansen said, "Builders FirstSource’s (“BFS”) recent acquisition of ProBuild greatly transformed the firm into the largest lumber distributor in the US with over $6 billion in sales. Since the announcement BFS's stock has more than doubled; however we think there is still more upside as we re-instate coverage with a $20 target price and BUY rating. While BFS operates in the highly competitive lumber distribution industry, we believe its dominant market position and synergies from the acquisition should help drive industry leading profitability with 10% EBITDA margins by 2018 and over $1 billion of free cash flow generation over the next three years."

For an analyst ratings summary and ratings history on Builders FirstSource click here. For more ratings news on Builders FirstSource click here.

Shares of Builders FirstSource closed at $15.32 yesterday.

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