Builders FirstSource (BLDR) PT Raised to $200 at Stephens

Stephens analyst Trey Grooms raised the price target on Builders FirstSource (NYSE: BLDR) to $200.00 (from $178.00) while maintaining a Overweight rating.

The analyst commented: "BLDR's 3Q sales missed expectations. Adj. EBITDA margin of 14.8% came in above our estimate. CY24 sales guide was lowered, adj. EBITDA guide was narrowed, and the margin guide was raised, with implied 4Q sales and EBITDA in-line with consensus at the midpoint. Mgmt. also provided a 2025 single-family starts scenario analysis, which suggests consensus EBITDA estimates could be reached assuming 5%-9% single-family starts growth. Our base case for 2025 single-family starts is flat to up slightly yoy, with our expectation that a re-acceleration won't arrive until sometime in 2H25. Our assumptions could prove conservative if inflation remains at bay and rates begin to move lower sooner rather than later. We still see BLDR as one of the best positioned to benefit from a housing rebound with structurally higher margins and strong cash generation in the meantime. We reiterate our Overweight rating and our target goes to $200 (from $178)."

You May Also Be Interested In

• Bernstein SocGen Group Starts Terawulf Inc. (WULF) at Outperform
• SpaceX files for 555.56M share IPO at $135/sh
• Us Says Israel, Lebanon Agree To Implement Ceasefire - Bloomberg