Builders FirstSource price target lowered to $155 from $165 at Oppenheimer

Oppenheimer analyst Tyler Batory lowered the firm’s price target on Builders FirstSource (BLDR) to $155 from $165 and keeps an Outperform rating on the shares. The firm is lowering estimates on Builders FirstSource to reflect a weaker backdrop for single-family starts and its expectation for a difficult competitive environment for the remainder of the year. Oppenheimer sees 2025 as a transitional period as the company digests weaker than expected single-family starts, continued margin normalization, and less capacity for M&A/share repurchases. The long-term outlook remains favorable with Builders FirstSource positioned to benefit from a housing industry that is still under-built and bolt-on M&A opportunities.