RBC Capital Downgrades Installed Building Products (IBP) to Underperform

RBC Capital analyst Mike Dahl downgraded Installed Building Products (NYSE: IBP) from Sector Perform to Underperform with a price target of $197.00 (from $203.00).

The analyst comments: "We are downgrading IBP to Underperform and lowering our PT to $197. Our FY’24E/FY’25E Adj. EBITDA decline -2% to $517/$522 MM, driven by weaker margins following 3Q’s softer price/mix and GM % headwinds. We believe MF headwinds are still to come, while broader rate pressure increases risk of a tepid SF growth backdrop in FY’25. Finally, we see post-election risk of a potential rollback of tougher pending energy code enforcement (or parts of the IRA), which could dampen the volume/price outlook and investor sentiment. We see unattractive NT risk/reward with valuation still elevated at ~12.5x ’25E EBITDA (~11x 5-yr avg.)."

For an analyst ratings summary and ratings history on Installed Building Products click here. For more ratings news on Installed Building Products click here.

Shares of Installed Building Products closed at $217.27 yesterday.

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