Deutsche upgrades SiteOne to Buy on ‘overdone’ earnings selloff

Deutsche Bank upgraded SiteOne Landscape (SITE) to Buy from Hold with an unchanged price target of $160. The firm views the selloff in the shares post the Q1 report as “overdone.” SiteOne reported Q1 EBITDA in line with consensus as better EBITDA margin more than offset weaker volumes in the seasonally small quarter, the analyst tells investors in a research note. Deutsche believes the market interpreted the company’s reiterated full year guidance as an implicit cut. However, SiteOne is using conservative assumptions and the outlook has upside, the firm contends. It sees an attractive entry point at current share levels.