B. Riley analyst Alex Rygiel lowered the firm’s price target on Builders FirstSource to $59 from $66 and keeps a Neutral rating on the shares. The analyst reduced 2023 estimates to reflect lower volume expectations and weaker lumber prices. He expects 2023 to be a challenging year for Builders FirstSource, saying demand for building material will decline significantly, driven by lower new home construction activity and meaningfully lower lumber commodity prices. These issues will challenge management and the company’s ability to maintain EBITDA margins above 10% versus pre-COVID EBITDA margins of 6%-7%, Rygiel tells investors in a research note.
Published first on TheFly
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