Analyst Michael Rehaut of J.P. Morgan maintained a Buy rating on TopBuild, boosting the price target to $398.00.
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Michael Rehaut has given his Buy rating due to a combination of factors that highlight TopBuild’s strategic growth potential and financial strength. The acquisition of Progressive Roofing is seen as a significant growth opportunity, allowing TopBuild to enter the commercial roofing market, which is less cyclical and highly fragmented. This move aligns with the company’s M&A-oriented strategy and is expected to be immediately accretive to earnings per share.
Additionally, the acquisition is anticipated to enhance TopBuild’s offerings to general contractors, potentially creating sales synergies. The financial outlook for TopBuild is positive, with an increase in projected EBITDA for 2026, and a raised price target reflecting the company’s growth prospects. The valuation of TopBuild remains attractive, trading slightly above its 5-year average EV/EBITDA and below its closest peer, while the company’s strong balance sheet and effective execution in a challenging housing market further support the Buy rating.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $400.00 price target.
Based on the recent corporate insider activity of 19 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.