Builders FirstSource price target lowered to $217 from $220 at Stifel

Stifel lowered the firm’s price target on Builders FirstSource to $217 from $220 and keeps a Buy rating on the shares. The firm notes the company reported Q1 revenues and adjusted EBITDA ahead of expectations, and reiterated 2024 guidance. Despite this, shares of Builders FirstSource are down 19% vs. a slight increase in major averages. Stifel attributes the decline to multiple factors. One, Builders FirstSource gave Q2 directional guidance below Street expectations, making full-year more second half of the year weighted. Two, Builders FirstSource mentioned single-family activity slowing near-term. Three, Q1 share repurchases were the lowest quarter in nearly three years. The firm’s view is that the move is an overreaction to the items listed above.