Beacon Roofing Supply (BECN) Risk Continues to Rise, Raymond James Reiterates Market Perform

Raymond James analyst Samuel Darkatsh reiterated a Market Perform rating on Beacon Roofing Supply (NASDAQ: BECN) after gross margins beat expectations in F4Q due to highly favorable and largely temporary benefits from the timing and effect of price-cost.

Despite the upside, the analyst remains cautious, stating "the risk profile of Beacon continues to rise, with residential shingle supply/inventory outpacing sell-out volumes on a y/y basis for the second straight quarter, and December quarter EBITDA margin guidance was below views. We reiterate our Market Perform rating given elevating risk from inventory build vs. sell-through y/y, although note that valuation is increasingly interesting given an FCF yield that approaches 10%."

For an analyst ratings summary and ratings history on Beacon Roofing Supply click here. For more ratings news on Beacon Roofing Supply click here.

Shares of Beacon Roofing Supply closed at $55.41 yesterday.

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