Beacon price target raised to $120 from $95 at BMO Capital

BMO Capital analyst Ketan Mamtora raised the firm’s price target on Beacon (BECN) to $120 from $95 and keeps an Outperform rating on the shares. Home Depot (HD) appears to be paying a low-14-times EBITDA multiple for SRS Distribution’s roofing distribution business, which is well north of Beacon’s 10-times current multiple, the analyst tells investors in a research note. Beacon’s relatively stable end-markets, operating performance improvements, significantly reduced financial leverage, and a simplified capital structure also warrants a higher multiple, the firm added.