Goldman Sachs Starts Builders FirstSource (BLDR) at Buy

Goldman Sachs analyst Charles Perron-Piche initiates coverage on Builders FirstSource (NYSE: BLDR) with a Buy rating and a price target of $225.00.

The analyst comments: "Over the past decade, Builders FirstSource has evolved from a lumber and building materials distributor into a provider of value-added products and services to the homebuilding industry. Reflecting the success of the strategy, we look for revenues and adj. EPS to compound 27% and 1% between 2014 and 2024, making it the top performer in our housing coverage. In our view, BLDR is well positioned to continue on this path in the coming years as it: 1) realizes accelerated growth from recovering new home construction, 2) grows share in value-added products through investments in capacity and digital capabilities, 3) drives incremental productivity savings and SG&A leverage, benefiting margins, and 4) leverages a strong balance sheet and incremental FCF to support accretive M&A along with shareholder returns. As such, we believe the current valuation is an attractive entry point and launch coverage with a $225 price target, representing a 16% upside."

For an analyst ratings summary and ratings history on Builders FirstSource click here. For more ratings news on Builders FirstSource click here.

Shares of Builders FirstSource closed at $194.40 yesterday.

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