DA Davidson downgrades Installed Building Products stock to Neutral

Published 12/08/2025, 11:58
DA Davidson downgrades Installed Building Products stock to Neutral

Investing.com - DA Davidson downgraded Installed Building Products (NYSE:IBP) from Buy to Neutral while raising its price target to $252.00 from $225.00 following the company’s second-quarter earnings report. According to InvestingPro data, the stock is currently trading at a P/E ratio of 28x and near its 52-week high of $263.19.

The stock has risen approximately 20% since IBP released its earnings results last Thursday morning, prompting the rating change despite what the research firm described as "phenomenal" quarterly performance. InvestingPro data shows the stock has delivered impressive returns of 17% in the past week and 44% over the last six months.

DA Davidson noted that IBP demonstrated healthy and broad-based outperformance across end-markets during the quarter, along with stable gross margins.

Despite the positive results, the research firm believes the recent stock price increase has led to what it considers a full absolute and relative valuation, limiting further upside potential.

While DA Davidson continues to model second-half volume outperformance for IBP, it expects increasing challenges in the single-family housing market and believes shifting sentiment presents greater risk than opportunity for the stock’s valuation in the near term.

In other recent news, Installed Building Products reported its second-quarter earnings for 2025, significantly surpassing analysts’ expectations. The company achieved an earnings per share of $2.95, compared to the projected $2.42, marking a notable surprise increase of 21.9%. Revenues also exceeded forecasts, coming in at $760.3 million against the expected $714.07 million. These results demonstrate robust performance despite broader challenges in the single-family housing market. Additionally, RBC Capital raised its price target for Installed Building Products from $145.00 to $184.00, while maintaining an Underperform rating. RBC cited the company’s strong second-quarter results, attributing the success to private builder and regional mix advantages, as well as favorable weather and timing factors. These developments reflect the company’s ability to outperform expectations and adapt to market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.