Builders FirstSource upgraded to Buy after investor day at B. Riley

B. Riley upgraded Builders FirstSource to Buy from Neutral with a price target of $177, up from $128, following the investor day. Management’s newly provided 2026 base business targets reflect “attractive” 17% annual compounded adjusted earnings growth from 2024 to 2026, the analyst tells investors in a research note. The firm says Builders has become a “best-of-breed company” within the homebuilding ecosystem with greater visibility into capital allocation that is very shareholder-friendly. In addition, the company is nearing an inflection point in investor perception from a low-multiple commodity play into a services-and-solutions provider that is deserving of a higher valuation multiple, says Riley.