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Wedbush downgrades Builders FirstSource to Neutral on lumber deflation

As previously reported, Wedbush downgraded Builders FirstSource (BLDR) to Neutral from Outperform with a $145 price target The firm notes the shares are within 5% of its unchanged price target and Wedbush does not see a developing catalyst to lift it. The tepid macro-outlook for single family starts for the balance of 2025 and 2026, the persistent inventories of new homes for sales, and lower lumber prices on Builders FirstSource’s main inputs may result in more downside than upside risk to Q3 2025’s results, the firm says, adding that it is concerned volumes may be challenged near term and into 2026.

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