
TopBuild (BLD) Stock Forecast & Price Target
TopBuild (BLD) Analyst Ratings
Bulls say
TopBuild Corp has raised its full-year sales and EBITDA outlook due to incremental contributions from acquired entities, notably SPI, indicating strong growth potential with targeted sales CAGR of 8%-10% and the possibility of doubling EPS by 2030. The company is expected to achieve significant EBITDA improvements from recent acquisitions, with projections estimating an additional $40M-$50M from Progressive Roofing and $65M-$75M from SPI, along with further contributions from upcoming tuck-in acquisitions. Additionally, the ongoing supply chain efficiencies and market growth in single-family new construction enhance the company's long-term growth prospects and solidify its positive financial trajectory.
Bears say
TopBuild Corp's financial outlook is challenged by a mixed performance in its operating segments, as the Installation segment's EBITDA margin slightly improved, while the Specialty Distribution segment experienced a notable decline, attributed to a significant price/cost headwind. Proforma leverage currently stands at approximately 2.4x, with expectations of a reduction to 1.7x by the end of 2026; however, the anticipated decline in same-branch residential sales and flat commercial and industrial sales add to concerns regarding growth. Additionally, the current EBITDA margins for Specialty Distribution, at 10.7%, significantly underperform compared to the prior distribution unit’s margins, indicating potential profitability issues amidst uncertainties in the residential market and declining activity in multi-family projects.
This aggregate rating is based on analysts' research of TopBuild and is not a guaranteed prediction by Public.com or investment advice.
TopBuild (BLD) Analyst Forecast & Price Prediction
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