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Investing.com - Jefferies lowered its price target on Builders FirstSource (NYSE:BLDR) to $138.00 from $146.00 on Friday, while maintaining a Buy rating on the stock. The adjustment comes as BLDR shares have declined 7.07% over the past week and 19.34% year-to-date, with the stock currently trading at $116.28.
The research firm noted that despite competitive market conditions, margins for the building materials supplier have stabilized recently. As a prominent player in the Building Products industry, BLDR maintains a healthy gross profit margin of 31.58% despite revenue declining 6.39% in the last twelve months.
Jefferies pointed out that Builders FirstSource is currently trading at 11.1 times 2026 estimated EV/EBITDA at what it considers the bottom of the cycle, and suggested the stock should find support at the $100 level.
The firm’s analysis indicates that normalized EBITDA could be 50% higher based on a single-family housing starts framework that appears achievable in the medium term.
This potential earnings growth demonstrates significant upside potential in the company’s earnings power and stock performance, according to Jefferies’ assessment of Builders FirstSource’s business outlook.
In other recent news, Builders FirstSource reported its third-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.88, which was higher than the forecasted $1.58, resulting in an 18.99% surprise. Revenue also exceeded predictions, coming in at $3.94 billion compared to the anticipated $3.84 billion. These results reflect positively on the company’s financial performance for the quarter. The earnings and revenue figures are crucial for investors, as they indicate the company’s ability to generate profit and growth. The company’s performance has garnered attention, although specific analyst upgrades or downgrades were not mentioned in the recent reports. These developments are part of ongoing updates concerning Builders FirstSource. Investors and analysts will likely continue to monitor the company’s financial health and market position closely.
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