BofA analyst Rafe Jadrosich raised the firm’s price target on TopBuild (BLD) to $480 from $455 and keeps a Buy rating on the shares after the company agreed to acquire Specialty Products & Insulation in an all-cash transaction valued at $1B. The firm views the deal positively given that it increases scale and competitive advantages in a fragmented industry, it diversifies end markets, it increases mix of recurring/maintenance revenue exposure and the firm sees significant synergy and operational efficiency opportunities in the Specialty Distribution segment, the analyst tells investors.
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