Stifel Reiterates Buy Rating on Beacon Roofing Supply (BECN)

Stifel analyst Andrew Carter reiterated a Buy rating and $131.00 price target on Beacon Roofing Supply (NASDAQ: BECN).

The analyst said, "In response to QXO’s tender offer, BECN adopted a limited duration Stockholder Rights Agreement whereby any non-acquiring shareholder would be able to purchase one BECN share for each share owned at a 50% discount to prevailing prices (mechanics outlined below). We take a mixed view of this announcement. The agreement serves the purpose outlined in BECN’s press release providing the Board time to fully evaluate its options including seeking another strategic acquirer with the ability to extend the timeline to allow more fulsome diligence. But it could allow BECN to proceed independently with any hostile acquirer facing significant dilution. QXO was no doubt aware of this potential and could separately launch a proxy contest. We will more fulsomely evaluate our outlook with BECN’s formal response to QXO’s offer but continue to believe a takeout is likely."

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 $119.27 yesterday.

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