- Truist analyst Keith Hughes downgraded Beacon Roofing Supply, Inc. BECN to Hold from Buy and lowered the price target to $58 (an upside of 11%), from $65.
- Hughes mentions that the company has benefited from substantial price/cost and management actions, including divestiture and debt paydown along with improving under-performing branches, but these benefits are set to subside in FY22, limiting upside to his FY22 EBITDA estimate.
- Hughes adds that the valuation on the stock is "slightly sub-average" at 8.8-times expected FY22 EBITDA, and he doesn't see an expansion given the variability of residential roofing demand after a good year.
- Price Action: BECN shares are trading lower by 3.18% at $52.06 on the last check Monday.
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