TopBuild upgraded to Buy from Hold at Loop Capital

Loop Capital upgraded TopBuild to Buy from Hold with a price target of $405, up from $260. The uptick in new single-family housing starts and the current multi-family backlog should support healthy demand levels for the first half of the year given the correlation of residential insulation installation to new housing completion, the analyst tells investors in a research note. The firm is also turning more optimistic about 2024 single-family new construction as mortgage rates have come off from peak levels and with home builder optimism also increasing in conjunction with the potential for the Federal Reserve to enact multiple interest rate cuts.