Builders FirstSource price target lowered to $100 from $145 at KeyBanc

KeyBanc analyst Jeffrey Hammond lowered the firm’s price target on Builders FirstSource (BLDR) to $100 from $145 to reflect lower estimates, while keeping an Overweight rating on the shares. Following underperformance into the print, the firm thought that a more conservative forward outlook was largely priced into shares. Although KeyBanc thinks there remain some questions around near-term demand fundamentals, the firm would be a buyer of recent weakness. KeyBanc believes valuation is compelling at current levels and undervalues Builders’ structural advantages and long-term growth runway ahead of an eventual housing inflection.