Analysts Raise The Roof With Boosted Price Targets For Builders Firstsource

Analysts are upbeat on the growth prospects of Builders FirstSource Inc BLDR and raised the price target. The company posted a strong Q1 earnings beat yesterday. 

Revenues of $3.88 billion beat the analyst consensus estimate of $3.58 billion. Adjusted EPS of $2.96 exceeded the analyst consensus of $1.51.

RBC Capital upgraded the company to Outperform from Sector Perform at an increased price target of $135 from $78 on continued strength in margins.

Analyst Mike Dahl raised the estimate for 2023 adjusted EBITDA to $2.14 billion from $1.49 billion, adjusted EBITDA margin to 13.0% from 10.1%, sales to $16.44 billion (-28% y/ y) from $14.77 billion and adjusted EPS to $8.08 from $4.19.

For 2024, Dahl now expects adjusted EBITDA of $2.09 billion (vs. $1.65 billion earlier), adjusted EPS of $8.80 (vs. $5.93 prior), and sales of $18.29 billion (from $16.43 billion earlier).

Stephens raised the price target to $130 from $98 at an Overweight rating. 

Analyst Trey Grooms raised the estimate for Q2 2023 sales to $4.08 billion (from $4.3 billion), adjusted EBITDA to $550.5 million (from $506.4 million), and operating EPS to $2.77 (from $2.23). 

For 2023, grooms now expect sales of $16.32 billion (vs. $15.87 billion earlier), adjusted EBITDA of $2.17 billion (versus $1.7 billion prior), and operating EPS of $10.65 (vs. $7.19 previously). 

For 2024, the analyst raised expectations for sales to $17.56 billion (from $17.22 billion), adjusted EBITDA to $2.36 billion (from $1.91 billion), and operating EPS to $12.10 (from $8.28).

Barclays boosted the price target of BLDR to $150 from $107 at an Overweight rating.

Price Action: BLDR shares are trading lower by 1.03% at $106.35 on the last check Thursday.