Analyst Rafe Jadrosich of Bank of America Securities reiterated a Buy rating on TopBuild, with a price target of $480.00.
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Rafe Jadrosich has given his Buy rating due to a combination of factors surrounding TopBuild’s strategic acquisition of Specialty Products & Insulation (SPI). The acquisition is seen as a strong strategic fit, enhancing TopBuild’s scale and competitive edge in a fragmented market. It also presents significant opportunities for synergies and operational efficiencies within the Specialty Distribution segment, diversifying TopBuild’s market exposure and increasing its recurring revenue mix.
Furthermore, the acquisition is financially attractive, with the deal priced at a favorable valuation compared to TopBuild’s current multiples. The transaction is expected to be earnings accretive by 2027, despite a temporary pause in share repurchases to manage leverage. TopBuild’s successful track record with previous acquisitions, such as Distribution International, suggests potential upside in achieving synergy targets, further supporting the Buy rating.
In another report released yesterday, D.A. Davidson also maintained a Buy rating on the stock with a $465.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BLD in relation to earlier this year.