Builders FirstSource price target raised to $90 from $72 at Deutsche Bank

Deutsche Bank analyst Joe Ahlersmeyer raised the firm’s price target on Builders FirstSource to $90 from $72 and keeps a Buy rating on the shares. The analyst now has increased conviction in his view that residential new construction can "remain surprisingly resilient" in 2023. He urges investors to "drop past rules of thumb" around starts, and derive forecasts for building product volumes from completions instead. With interest rate risk "now seeming to drift favorably," Ahlersmeyer is "far more constructive" on stocks with new construction exposure. As a result, he upgraded TopBuild (BLD) and Installed Building Products (IBP) to Buy from Hold and meaningfully raised target prices on existing Buys Builders FirstSource (BLDR) and Masonite (DOOR).