In a report released yesterday, Kenneth Zener from Seaport Global upgraded TopBuild to a Buy, with a price target of $450.00.
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Kenneth Zener has given his Buy rating due to a combination of factors including TopBuild’s operational excellence and strategic growth through mergers and acquisitions. The company has demonstrated a flexible cost structure, which is expected to alleviate some of the challenges faced by the housing sector. This adaptability is reflected in their long-term operating leverage, which is projected to improve in the coming years.
Additionally, TopBuild’s efforts in diversifying its market presence, particularly by increasing its non-residential segment, have been noteworthy. This diversification strategy is seen as a positive move to stabilize revenue streams. Furthermore, while there is a slight adjustment in the expected earnings per share, the overall outlook for EBITDA remains optimistic, reinforcing the Buy recommendation.
According to TipRanks, Zener is a 5-star analyst with an average return of 13.1% and a 66.82% success rate. Zener covers the Consumer Cyclical sector, focusing on stocks such as KB Home, PulteGroup, and Toll Brothers.