UFP Industries (UFPI – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Reuben Garner from Benchmark Co. maintained a Buy rating on the stock and has a $135.00 price target.
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Reuben Garner has given his Buy rating due to a combination of factors that suggest potential for future growth and value in UFP Industries. Despite the company’s mixed results in the fourth quarter of 2024, with earnings per share falling short of expectations, there are positive indicators for the future. Garner highlights that UFP Industries is implementing significant cost improvements, aiming for $60 million in annual EBITDA improvements by fiscal year 2026 through strategic cost reductions and capacity adjustments.
Moreover, the Deckorators product line is experiencing notable momentum, with a 20% increase in sales driven by the success of its Surestone technology. This product line is set to expand even further, with plans to reach approximately 1,500 stores nationwide later in 2025. Although challenges persist in the market, particularly in the Packaging and Construction segments, the company’s strategic initiatives and investment opportunities worth $1 billion are expected to enhance growth and efficiency, justifying the Buy rating.
According to TipRanks, Garner is a 5-star analyst with an average return of 17.9% and a 62.14% success rate. Garner covers the Industrials sector, focusing on stocks such as Quanex, Hillman Solutions, and Steelcase.
In another report released yesterday, Wedbush also maintained a Buy rating on the stock with a $155.00 price target.