
Builders FirstSource (BLDR) Stock Forecast & Price Target
Builders FirstSource (BLDR) Analyst Ratings
Bulls say
Builders FirstSource Inc. is positioned favorably for long-term organic growth, driven by an expected acceleration in the housing market recovery and increasing demand for manufactured building products. The company's gross margin percentage has shown resilience, coming in at 32.3%, surpassing management’s previous expectations, which indicates structural margin improvements that are likely to withstand competitive pressures. Additionally, Builders FirstSource maintains a healthy leverage ratio in the 1x-2x range, complemented by strong free cash flow generation that supports potential merger and acquisition activity as well as aggressive share buybacks, further enhancing its financial stability and growth potential.
Bears say
Builders FirstSource is facing significant challenges reflected in its financial metrics, including a 2% decline in EBITDA to $2.16 billion and anticipated declines in gross margin percentage, expected to dip to 30.8% in 1Q'25 from 31.4%. The company's sales projections for 1Q suggest a year-over-year decrease of 2-10%, primarily due to external factors like adverse weather conditions and operational disruptions, which could lead to a further slowdown in new residential construction and increased volatility in lumber prices, thereby affecting profit margins. Additionally, a high reliance on the residential construction sector, which accounts for approximately 75% of revenue, poses further risks if the market continues to decelerate.
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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