
Builders FirstSource (BLDR) Stock Forecast & Price Target
Builders FirstSource (BLDR) Analyst Ratings
Bulls say
Builders FirstSource Inc. is well-positioned for growth due to its expected acceleration in the housing market recovery, which is likely to drive increased demand for its manufactured building products. The company has demonstrated meaningful margin improvements, with gross margins reaching 32.3%, reflecting ongoing structural gains despite market challenges. Furthermore, Builders FirstSource maintains a strong financial position with leverage in the 1x-2x range and robust free cash flow generation, providing opportunities for future mergers and acquisitions, share repurchases, and enhanced customer wallet share.
Bears say
Builders FirstSource Inc. is facing a negative outlook primarily due to a projected EBITDA decline of 2% to $2.16 billion and expectations of a modest decline in gross margins to 30.8% for the first quarter of 2025. The anticipated slowdown in new residential construction, coupled with high volatility in lumber prices, poses significant risks that could further pressure margins and lead to revenue contraction. Additionally, the company's substantial reliance on the new residential sector, accounting for approximately 75% of its operations, heightens its vulnerability to market fluctuations and operational challenges.
This aggregate rating is based on analysts' research of Builders FirstSource and is not a guaranteed prediction by Public.com or investment advice.
Builders FirstSource (BLDR) Analyst Forecast & Price Prediction
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