Builders FirstSource price target lowered to $115 from $125 at DA Davidson

DA Davidson lowered the firm’s price target on Builders FirstSource (BLDR) to $115 from $125 and keeps a Neutral rating on the shares. The company reported better than expected Q3 results and modestly raised the midpoint of its full-year outlook, highlighting still relatively stable gross margins as well as the benefits of having already taken a more conservative view of demand exiting Q2, the analyst tells investors in a research note. The firm adds however that while performance remains resilient considering a number of market headwinds, the updated views around normalized profitability in a mid-cycle type single-family environment are meaningfully below targets outlined at the 2023 Investor Day.