
Simpson Manufacturing (SSD) Stock Forecast & Price Target
Simpson Manufacturing (SSD) Analyst Ratings
Bulls say
Simpson Manufacturing Co Inc has benefited from a significant gain on the sale of its Gallatin, TN manufacturing facility, contributing $13 million to its earnings, which is a strong performance in the current downcycle. The company's commitment to increasing free cash flow generation and returning cash to shareholders indicates robust financial health, while expectations of expanding market share in the construction materials segment could result in an annual growth of 100 to 150 basis points above the market from 2026 to 2031. Furthermore, management anticipates maintaining gross margins at 46% in 2024 and working towards achieving a 20% EBIT margin target by 2026, highlighting operational strength and positive market positioning.
Bears say
Simpson Manufacturing Co. faces significant challenges, with management downgrading its EPS and EBITDA forecasts for 2025 and 2026, reflecting a cautious outlook amid a projected weaker demand environment in the housing market. The company's reliance on wood products renders it vulnerable to risks associated with commodity pricing and supply chain disruptions, which could negatively impact revenue and operating results. Additionally, a prolonged recession or a double-dip in the housing market threatens to lower demand for the company's offerings, further jeopardizing its financial performance as indicated by the weakening starts environment and regional softness in market activity.
This aggregate rating is based on analysts' research of Simpson Manufacturing and is not a guaranteed prediction by Public.com or investment advice.
Simpson Manufacturing (SSD) Analyst Forecast & Price Prediction
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