urfinguss/iStock via Getty Images
Builders FirstSource (NYSE:BLDR) on Wednesday rose as much as 5.4% to a four-month high after analysts at B. Riley Securities raised their rating on the supplier of building materials to Buy from a previous investment rating of Neutral.
They said they were impressed with the company’s investor day presentations in Atlanta on Tuesday.
“Builders FirstSource (BLDR) has become a best-of-breed company, in our opinion, within the homebuilding ecosystem with greater visibility into capital allocation that is very shareholder-friendly,” Alex Rygiel, analyst at B. Riley, said in a December 6 report. “The company is nearing an inflection point in investor perception from a low-multiple commodity play into a services-and-solutions provider that we believe is deserving of a higher valuation multiple.”
The stock’s price could more than double in the next three years, according to B. Riley’s analysis.
The securities firm raised its price target on Builders FirstSource (BLDR) to $177 a share from $128 previously, based on an estimated enterprise value that’s nine times earnings before interest, taxes, depreciation and amortization for 2024.
| B. Riley's estimates for Builders FirstSource Inc. (BLDR), Dec. 6 | |||
| Net sales (mln) | |||
| New | Old | ||
| 2023E | $16,918 | $16,918 | |
| 2024E | $17,658 | $17,358 | |
| 2025E | $19,250 | - | |
| Adjusted ebitda (mln) | |||
| New | Old | ||
| 2023E | $2,779 | $2,779 | |
| 2024E | $2,698 | $2,556 | |
| 2025E | $2,839 | - | |
| Adjusted EPS | |||
| New | Old | ||
| 2023E | $13.87 | $13.87 | |
| 2024E | $13.93 | $13.06 | |
| 2025E | $15.79 | - | |
More on Builders FirstSource
- Builders FirstSource: Ready For 2024, A Bargain Opportunity, 7x FCF
- Builders FirstSource Is A Good Buy At Current Levels
- Builders FirstSource, Inc. (BLDR) Q3 2023 Earnings Call Transcript
- Druckenmiller's Duquesne takes new stakes in Alibaba, Alphabet; exits Meta
- Builders FirstSource's stock rises as adjusted earnings beat estimates