Builders Firstsource Sells Eastern U.S. Gypsum Distribution Operations
Building products supplier Builders FirstSource, Inc. (BLDR) announced that it has entered into an agreement to sell its standalone Eastern U.S. Gypsum Distribution Operations to L&W Supply. The financial terms of the deal, which is likely to close in the third quarter of 2021, have not been disclosed so far.
Following the news release, shares of the company gained 2% in Wednesday’s trading session. The company pared its gains slightly to close at $43 in the extended trading session.
The company’s Eastern Gypsum Operations spanned across 21 facilities in the Northeast and Southeast regions and generated sales of about $160 million in 2020.
The sale is in line with Builders Firstsource’s long-term strategy to narrow the company’s focus on its core business and growth initiatives. (See Builders Firstsource stock chart on TipRanks)
BTIG analyst Ryan Gilbert recently reiterated a Buy rating on the stock with a price target of $59. The analyst’s price target implies upside potential of 37.2% from current levels.
Consensus among analysts is a Strong Buy based on 10 unanimous Buys. The average Builders Firstsource price target of $63.70 implies upside potential of 48.1% from current levels.
Builders Firstsource scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 106.2% over the past year.
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