Piper Jaffray Raises PT To $22 On BECN

Piper Jaffray, citing a stronger than expected annual roofing season, is raising its price target slightly on Beacon Roofing Supply BECN, from $21 to $22. In its report, Piper Jaffray writes, “We are adjusting estimates and our price target (from $21 to $22) to reflect a stronger than expected roofing season this year. Catalysts related to a harsh winter and spring storms appear real, as ~70% of distributors/contractors we polled in Beacon's main markets reported y/y volume growth with only ~10% reporting down y/y volume with the balance suggesting no change. Additionally, we believe price increases are faring much better relative to last year given improved demand. We have adjusted 4QFY11, which should reflect most of the price increases and a significant portion of storm related volume. Our new FY11E EPS is $1.08 while FY12E goes to $1.35. Our new $22 PT remains based on 16x FY12E EPS.” Piper Jaffray maintains its Neutral rating on the stock. BECN closed yesterday at $21.39.