Builders FirstSource price target raised to $135 from $125 at BMO Capital

BMO Capital analyst Ketan Mamtora raised the firm’s price target on Builders FirstSource to $135 from $125 and keeps a Market Perform rating on the shares. The company reported a “good” Q2 and held a “constructive” earnings call, with labor shortages and productivity gains that are driving faster adoption of higher-margin value-added products, the analyst tells investors in a research note. New residential demand appears to be stabilizing at levels above expectations at the start of 2023, though risk/reward on the stock is balanced at current levels, the firm added.