
Builders FirstSource (BLDR) Stock Forecast & Price Target
Builders FirstSource (BLDR) Analyst Ratings
Bulls say
Builders FirstSource Inc. has exhibited strong performance in its recent third-quarter results, surpassing expectations while modestly raising its full-year guidance for sales, gross margin, EBITDA, and EBITDA margin. The company's resilience in gross margins amidst an inflationary environment suggests a favorable impact on both sales and profitability. Additionally, the consistent acquisition activities among competitors in the lumber and building materials (LBM) markets indicate a trend towards increased scale within the industry, which may further benefit Builders FirstSource’s competitive positioning and growth potential.
Bears say
Builders FirstSource reported a 20% year-over-year decline in core organic sales, contributing to a 7% decrease in total sales, largely due to tough comparisons from the previous year. Despite a resilient gross margin of 30.4%, the company faces potential risks from weakening new home demand and unfavorable trends in wage and employment growth, which could negatively impact gross margins, EBITDA, and earnings per share. Additionally, single-family starts and permits are trending down by 4% and 6% respectively, raising concerns about future renovation and remodeling demand if housing price appreciation slows or reverses.
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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