- Barclays analyst Matthew Bouley raised the price target on Builders FirstSource, Inc. BLDR to $90 (an upside of 33%) from $75 and maintained an Overweight rating on the shares post the "strong" Q3 results.
- Bouley says Builders is "only on the cusp" of its transformation to a scaled, value-added solutions provider to the construction industry, driving "long-running above-market growth alongside considerable capital deployment potential."
- BMO Capital analyst Ketan Mamtora raised the price target to $76 from $67 and maintained an Outperform rating on the shares after its Q3 earnings beat.
- The analyst is positive on the company's "solid execution" against a volatile commodity backdrop while noting that the new residential construction demand remains healthy.
- Mamtora adds that labor and material shortages are driving increased adoption of Builders' "higher margin and relatively stable value-added products."
- B. Riley analyst Alex Rygiel raised the price target to $74 from $58 and reiterated a Buy rating on the shares following the Q3 upside.
- Rygiel mentions Strong demand for new home construction coupled with high lumber prices, acquisitions, and strategic, operational initiatives are "providing strong tailwinds for the company."
- Baird analyst David Manthey raised the price target to $77 from $62 and maintained an Outperform rating on the shares.
- Manthey says the company is clearly taking a share in the labor/supply chain constrained environment, augmented by the company's value-added product portfolio. As value-added products increase in the mix, he sees additional underlying margin expansion opportunity ahead.
- RBC Capital analyst Mike Dahl raised the price target to $86 (an upside of 27%) from $70 and maintained an Outperform rating on the shares.
- Recently, Builders FirstSource reported better than expected Q3 results, with sales of $5.51 billion (+62.7% Y/Y) and +16% Y/Y on an organic basis, beating a consensus of $4.8 billion. The gross margin expanded 620 basis points to 31.1%.
- Adjusted EPS of $3.39 topped the consensus of $1.62. Adjusted EBITDA increased 244.4% Y/Y to $975.9 million, and margin expanded by 930 bps to 17.7%.
- FY21 Outlook: The company expects Net sales of $19.3 billion - $19.8 billion (prior 18 billion - $19 billion) versus the consensus of $18.5 billion.
- It expects Adjusted EBITDA of $2.85 billion - $2.95 billion (prior $2.2 billion - $2.4 billion).
- Price Action: BLDR shares are trading higher by 2.83% at $67.29 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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