Loop Capital last night initiated coverage of Builders FirstSource with a Buy rating and $180 price target. The company has a number of catalysts that support a “sustainable valuation re-rating moving forward,” the analyst tells investors in a research note. Builders FirstSource’ recent improvement in single-family housing starts will be a meaningful demand tailwind into 2024 and more than offset any moderation in multi-family construction next year, says the firm In addition, Loop believes the company’s long-term normalized gross margin target is likely conservative given its “dominant” market leading position, productivity savings, and increased value-added product mix,
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