Installed Building Products stock price target raised by RBC Capital

Investing.com - RBC Capital raised its price target on Installed Building Products (NYSE:IBP) to $184.00 from $145.00 on Friday, while maintaining an Underperform rating on the stock. The company’s shares are currently trading at $256.66, near their 52-week high of $263.19.

The price target increase follows what RBC described as a "solid beat" in second-quarter results, with the company showing robust outperformance compared to broader single-family housing weakness. The stock has demonstrated remarkable momentum, posting a 23.59% return in the past week and 42.28% over six months. RBC attributed this strength largely to private builder and regional mix advantages, partially helped by favorable weather and timing factors.

Despite the higher price target, RBC Capital expressed caution about IBP’s future performance, stating it expects "sharply worsening lagged single-family declines" to more meaningfully impact the company in the second half of 2025 and into 2026.

The research firm characterized Friday’s stock rally as "overbaked," noting that IBP’s valuation has reached an all-time high at 16 times EBITDA while facing the prospect of year-over-year declines in 2026.

RBC’s adjusted EBITDA estimates for fiscal year 2025 were raised by 6% following the second-quarter results, though the firm maintained its Underperform rating on Installed Building Products stock.

In other recent news, Installed Building Products Inc. reported its second-quarter earnings for 2025, significantly surpassing analysts’ expectations. The company achieved an earnings per share of $2.95, compared to the forecasted $2.42, marking a surprise increase of 21.9%. Revenues also exceeded projections, coming in at $760.3 million against the forecast of $714.07 million. These results highlight a strong performance from Installed Building Products and indicate robust operational efficiency. Analysts had anticipated lower figures, making this outcome noteworthy for stakeholders. The earnings announcement has drawn attention from investment firms, reflecting strong investor confidence in the company’s performance and future prospects. These developments underscore the importance of monitoring Installed Building Products for potential future growth.

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