Builders FirstSource upgraded to Outperform from Neutral at Baird

Baird upgraded Builders FirstSource to Outperform from Neutral with a price target of $190, up from $185. The firm says that with a guidance reset and key overhangs from multi-family sales, margin normalization and the downsizing of single-family starts set to fade in 2025, it sees a good setup for the shares. There are “many positive aspects” to the Builders FirstSource story, including ramping digital sales, strong cash generation and consistently strong base business margins driven by value-add expansion and productivity, the analyst tells investors in a research note.