BMO Capital analyst Ketan Mamtora has maintained their neutral stance on BLDR stock, giving a Hold rating today.
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Ketan Mamtora has given his Hold rating due to a combination of factors impacting Builders Firstsource. The company is facing a challenging environment with weaker-than-expected demand in the single-family housing market, which is leading to increased price competition and pressure on margins. Additionally, there is ongoing margin normalization in the multi-family segment, contributing to a significant year-over-year EBITDA drag.
Furthermore, the shift towards entry-level products and smaller, less complex homes is resulting in lower gross profit dollars. The company has also reduced its guidance for 2025, anticipating lower net sales and adjusted EBITDA compared to previous expectations. Despite a healthy balance sheet, the near-term outlook remains uncertain, particularly with the potential for increased competition among smaller truss producers if housing demand continues to be soft.
According to TipRanks, Mamtora is a 5-star analyst with an average return of 16.2% and a 69.31% success rate. Mamtora covers the Industrials sector, focusing on stocks such as Beacon Roofing Supply, Builders Firstsource, and Masco.
In another report released today, Stifel Nicolaus also maintained a Hold rating on the stock with a $118.00 price target.