Builders FirstSource price target raised to $185 from $155 at Loop Capital

Loop Capital analyst Jeffrey Stevenson raised the firm’s price target on Builders FirstSource to $185 from $155 and keeps a Buy rating on the shares. The company remains the firm’s favorite way to play an improving single-family residential construction environment with 70% of its overall sales in that category, since roughly two-thirds of its product categories correlate to new housing starts, the analyst tells investors in a research note. The Builders FirstSource December investor day also further confirmed its positive view that the margin step up from its post BMC merger integration is sustainable with the company increasing its long-term normalized gross margin target to 30%-33% from 29% or more previously, Loop added.