Barclays lowers Builders FirstSource stock price target to $135 on cyclical pressure

Published 31/07/2025, 21:02
Barclays lowers Builders FirstSource stock price target to $135 on cyclical pressure

Investing.com - Barclays (LON:BARC) has reduced its price target on Builders FirstSource (NYSE:BLDR) to $135.00 from $137.00 while maintaining an Overweight rating on the stock. The building materials supplier, currently trading at $127.32 with a market capitalization of $14.08 billion, maintains a healthy P/E ratio of 15.95 and shows strong financial health according to InvestingPro metrics.

The price target adjustment comes as cyclical volume pressure drives estimates lower for the building materials supplier, according to Barclays’ analysis.

Despite the slight reduction in price target, Barclays believes the company’s second-half top line is now "significantly de-risked," suggesting reduced downside potential for the remainder of the year.

The investment bank maintains that Builders FirstSource’s long-term growth story remains intact, with management reporting stabilizing market share and margins that could support upside when the market recovers.

Barclays also highlighted emerging "multifamily green shoots" as a positive indicator for the company, reinforcing its decision to maintain an Overweight rating despite the modest price target reduction.

In other recent news, Builders FirstSource reported its Q2 2025 earnings, revealing a mixed financial performance. The company achieved an earnings per share (EPS) of $2.38, which exceeded analysts’ expectations of $2.25. However, Builders FirstSource fell short on revenue, reporting $4.23 billion compared to the anticipated $4.27 billion. These developments have caught the attention of investors and analysts alike. The earnings report highlights the challenges and successes faced by the company in the current economic environment. Analysts from various firms are closely monitoring these figures to gauge the company’s financial health. The revenue miss, despite the EPS beat, is a focal point for stakeholders. Builders FirstSource’s recent performance will likely influence future analyses and projections by financial experts.

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