Beacon price target lowered to $124 from $130 at RBC Capital

RBC Capital lowered the firm’s price target on Beacon (BECN) to $124 from $130 and keeps an Outperform rating on the shares after its Q4 earnings miss. Solid pricing, M&A, greenfields, and cost/productivity actions should continue to support EBITDA growth, but the lack of meaningful progress around gross margins and operating expense remains a pain point while a weaker Q1 outlook also steepens the earnings ramps, the analyst tells investors in a research note.