Builders FirstSource price target raised by $10 at BofA, here’s why

BofA raised the firm’s price target on Builders FirstSource to $153 from $143 and keeps a Neutral rating on the shares after the company hosted an investor day and introduced financial targets for 2024-2026. 2026 targets were above the firm’s expectations, but are based on an industry assumption 1.1M single-family starts, which the firm thinks is “optimistic” given the recent peak of 1.13M in 2021 was the highest level since 2007. Still, the high-end of the gross margin range is well above expectations and only 15% of the earnings growth target is driven by industry growth, the analyst added.