William Blair analyst Ryan Merkel has maintained their bullish stance on BECN stock, giving a Buy rating today.
Ryan Merkel has given his Buy rating due to a combination of factors including Beacon Roofing Supply’s ability to meet its 2025 outlook expectations despite a challenging start to the year. The company has demonstrated resilience with its initiatives, such as the successful improvement of bottom-quintile branches, which achieved a $75 million EBITDA improvement target ahead of schedule. Additionally, Beacon’s new pricing model and other initiatives are expected to provide further margin growth opportunities.
Despite some market challenges like negative residential reroofing trends and elevated interest rates, the all-cash offer of $124.25 per share appears compelling. The company’s guidance for mid-single-digit growth, which includes contributions from acquisitions and price increases, suggests a conservative yet achievable outlook. Investors are also looking forward to the upcoming investor day for more insights on long-term targets, although it is anticipated that it will not significantly alter the current offer’s attractiveness.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $124.00 price target.