
Builders FirstSource (BLDR) Stock Forecast & Price Target
Builders FirstSource (BLDR) Analyst Ratings
Bulls say
Builders FirstSource Inc. is poised for growth due to an expected acceleration in the housing market recovery and increasing demand for manufactured products, which have contributed to significant and sustainable margin improvements. The company operates with a healthy leverage ratio of approximately 1x-2x, combined with strong free cash flow generation, allowing it to maintain financial stability while pursuing growth opportunities through mergers and acquisitions and share repurchases. Additionally, the company's solid gross margins, reported at 32.3%, coupled with ongoing resilience amid market volatility, underscore its favorable positioning to capitalize on market recovery and enhance customer wallet share.
Bears say
Builders FirstSource is facing a challenging outlook, indicated by a decline in EBITDA of 2% to $2.16 billion and expectations of further marginal reductions in gross margins. The company's significant exposure to new residential construction, which accounts for approximately 75% of its business, creates vulnerabilities amid concerns over a potential slowdown in that sector, compounded by high volatility in lumber prices affecting profitability. Additionally, anticipated first-quarter sales may underperform, ranging from $3.5 billion to $3.8 billion, which is below both company estimates and market projections, exacerbated by adverse weather conditions and operational disruptions.
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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