Builders FirstSource initiated with an Outperform at William Blair

William Blair analyst Ryan Merkel initiated coverage of Builders FirstSource (BLDR) with an Outperform rating and no price target The firm says Builders is the leader in distribution for the new residential construction market, offering an “unmatched combination of scale, breadth, manufacturing, and value-added services.” William Blair sees as much as 50% share upside in its bull case for a housing recovery and market share gains. Meanwhile, the potential for a buyout limits the stock’s downside to about 15% below the current share price, the analyst tells investors in a research note.