SiteOne Landscape upgraded to Buy from Neutral at UBS

UBS upgraded SiteOne Landscape to Buy from Neutral with a price target of $200, up from $145. The company’s earnings have bottomed, with EBITDA growth to inflect positive in the second half of 2023 and accelerate to up low single digits in 2024 and 2025, the analyst tells investors in a research note. The firm says SiteOne’s business is “relatively resilient from macro risks” stemming from its 36% maintenance mix and 2020-2021 pull-forward demand flushed out. UBS notes the stock’s relative valuation is at the low end of the historical band, presenting an attractive buying opportunity as SiteOne’s growth reaccelerates.