Builders FirstSource price target lowered to $150 from $175 at Stephens

Stephens lowered the firm’s price target on Builders FirstSource to $150 from $175 and keeps an Overweight rating on the shares. The company’s Q3 sales were below estimates due to weakness in single-family and commodity deflation, the analyst tells investors. The demand environment in 2024 will remain choppy as multifamily is expected to weaken from elevated levels and mortgage rates has clouded outlook on single-family demand, the firm adds. However, Stephens remains constructive due to the company’s ability to outperform the market, partially offset margin degradation, and generate cash flow.