B.Riley FBR analyst Alex Rygiel reiterated a Buy rating on Builders Firstsource (BLDR) today and set a price target of $19. The company’s shares closed yesterday at $16.82.
Rygiel noted:
“We are raising our estimates and price target from $18 to $19 following strong 1Q19 results (5/3). With its focus on operational excellence and driving value-added product growth, Builders has done a good job navigating through commodity price volatility with strong Y/Y growth per day across the single-family new construction, R&R, and MFU markets. And now with leverage within a comfortable rate, we believe management will be more focused on driving growth and shareholder value through M&A and share repurchases. We continue to believe that BLDR can deliver industry-leading growth and profitability, while expanding geographically and maintaining strong cash flow generation. We reiterate our Buy rating.”
According to TipRanks.com, Rygiel is a 5-star analyst with an average return of 8.2% and a 60.8% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.
Currently, the analyst consensus on Builders Firstsource is a Moderate Buy with an average price target of $16.17, implying a -3.9% downside from current levels. In a report issued on May 3, Wedbush also maintained a Buy rating on the stock with a $18 price target.
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Based on Builders Firstsource’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $35.71 million. In comparison, last year the company had a net profit of $23.22 million.
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Builers FirstSource, Inc. engages in the supply and manufacture of building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. It operates through the following segments: Northeast, Southeast, South, and West.
