TopBuild price target raised to $620 from $500 at Seaport Research

Seaport Research raised the firm’s price target on TopBuild (BLD) to $620 from $500 and keeps a Buy rating on the shares following a “bevy of news flow” affecting builders. While noting that housing remains “fundamentally challenged,” the firm sees lower ROE builders creating a valuation floor for higher quality names, affirmed by today’s M&A, which it sees helping to insulate builders’ relative price performance despite falling estimates.