William Blair analyst Ryan Merkel has maintained their bullish stance on BLDR stock, giving a Buy rating on April 20.
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Ryan Merkel has given his Buy rating due to a combination of factors, even though near-term results and guidance were disappointing. He believes the company’s recent margin weakness largely reflects softer housing starts and pricing pressure that should ease as conditions normalize, while Builders FirstSource’s scale and market leadership position it to capture share and improve profitability when demand recovers.
Merkel also sees an attractive risk/reward profile supported by disciplined cost controls, productivity gains, and active share repurchases at what he views as depressed valuation levels. He notes that modest improvements in mortgage rates or housing sentiment, along with support from higher commodity prices, could drive upside to earnings and justify a higher valuation multiple over time.
According to TipRanks, Merkel is a 3-star analyst with an average return of 3.6% and a 49.74% success rate. Merkel covers the Industrials sector, focusing on stocks such as QXO Inc, Ferguson PLC, and Builders Firstsource.
In another report released on April 20, RBC Capital also maintained a Buy rating on the stock with a $110.00 price target.