Benchmark Co. analyst Reuben Garner maintained a Buy rating on Builders Firstsource (BLDR – Research Report) today and set a price target of $138.00.
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Reuben Garner has given his Buy rating due to a combination of factors that highlight Builders FirstSource’s potential for future growth despite current challenges. The company has demonstrated solid first-quarter results, and while the macroeconomic environment and competitive pricing have impacted their margins, there are positive signs of stabilization. Garner notes that Builders FirstSource has several strategies in place to protect and potentially improve margins, including productivity savings and operational improvements.
Moreover, the company’s focus on digital sales and acquisition synergies indicates a commitment to long-term growth. Although there is some uncertainty in the construction market, Garner believes that Builders FirstSource’s reduced sensitivity to commodity prices and its technological advancements position it well for future earnings growth. This potential for higher, more stable margins supports the Buy rating, as the company is seen as more than just a building products distributor, with opportunities for outsized growth.
Garner covers the Industrials sector, focusing on stocks such as Bluelinx Holdings, Builders Firstsource, and Quanex. According to TipRanks, Garner has an average return of 11.5% and a 51.30% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $137.00 price target.