SiteOne Landscape downgraded to Hold from Buy at Loop Capital

Loop Capital downgraded SiteOne Landscape to Hold from Buy with an unchanged $165 price target. The stock has exceeded the firm’s price target at times in recent weeks despite the lack of mid-term catalysts and a fair valuation based on Loo’s current estimates, the analyst tells investors in a research note. SiteOne Landscape had also been viewed as a “return to earnings growth story” in 2024 due to demand tailwinds in its maintenance and new residential end markets benefiting from lower commodity-based pricing and improved single-family housing starts, but the company’s disappointing Q3 earnings results have muddied this thesis as greater than anticipated commodity price deflation is expected to remain a headwind through the first half of 2024, the firm added.