William Blair analyst Ryan Merkel has maintained their bullish stance on BLDR stock, giving a Buy rating on March 5.
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Ryan Merkel has given his Buy rating due to a combination of factors that support a favorable risk‑reward profile for Builders FirstSource. He notes that while housing remains challenged, management is candid about near‑term headwinds yet confident that easing mortgage rates and more balanced new‑home inventories can unlock demand and drive the next leg of growth.
At the same time, Merkel highlights that Builders FirstSource has been investing heavily in manufacturing, automation, services, and software, which should position the company to capture market share and expand margins when housing activity recovers. He also points out that gross margins, pressured recently by volume deleverage and tougher competition, should move back into the 30%–33% range in a better housing environment, reinforcing the upside potential in the stock.
Merkel covers the Industrials sector, focusing on stocks such as QXO Inc, Fastenal Company, and Aaon. According to TipRanks, Merkel has an average return of 5.9% and a 54.40% success rate on recommended stocks.
In another report released on March 5, RBC Capital also upgraded the stock to a Buy with a $119.00 price target.