KeyBanc Downgrades Beacon Roofing Supply (BECN) to Hold; Valuation Call

KeyBanc downgraded Beacon Roofing Supply (NASDAQ: BECN) from Buy to Hold.

KeyBanc analyst says, "BECN delivered a solid finish to 2011 on robust storm demand (4Q11 EPS of $0.57 excluding tax benefit vs our $0.52 estimate) and issued 10-15% EPS growth for 2012 ($1.31 mid-point), but we are downgrading the stock to HOLD on full valuation, despite solid underlying fundamentals. With strong storm demand in 1Q12 already priced in and valuation at 14.9x on a 2012 P/E basis, we think a higher multiple is unlikely amid slowing price trends and potentially tough storm comps in 4Q12, despite the likelihood of increasing acquisitions activity in 2012."

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 $19.38 yesterday.

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