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Analyst Expectations For Builders FirstSource's Future

Author: Benzinga Insights | June 25, 2024 10:01am

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on Builders FirstSource (NYSE:BLDR) in the last three months.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 3 3 0 0
Last 30D 0 1 0 0 0
1M Ago 1 0 0 0 0
2M Ago 0 1 2 0 0
3M Ago 1 1 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $199.62, along with a high estimate of $240.00 and a low estimate of $175.00. A decline of 5.67% from the prior average price target is evident in the current average.

price target chart

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive Builders FirstSource is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jay McCanless Wedbush Lowers Outperform $175.00 $215.00
Rafe Jasrosich B of A Securities Lowers Buy $183.00 $195.00
Matthew Bouley Barclays Lowers Overweight $200.00 $240.00
Keith Hughes Truist Securities Lowers Hold $180.00 $190.00
David Manthey Baird Lowers Neutral $197.00 $207.00
Collin Verron Jefferies Raises Buy $237.00 $226.00
Matthew Bouley Barclays Raises Overweight $240.00 $235.00
Kurt Yinger DA Davidson Maintains Neutral $185.00 $185.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Builders FirstSource. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Builders FirstSource compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Builders FirstSource's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Builders FirstSource's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Builders FirstSource analyst ratings.

About Builders FirstSource

Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing, and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.

Breaking Down Builders FirstSource's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Builders FirstSource showcased positive performance, achieving a revenue growth rate of 0.21% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Builders FirstSource's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 6.65%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 5.34%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Builders FirstSource's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 2.39%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.86, Builders FirstSource adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: BLDR