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Investing.com - DA Davidson raised its price target on Simpson Manufacturing (NYSE:SSD) to $185.00 from $180.00 on Tuesday, while maintaining a Neutral rating on the stock. Currently trading at $181.66, the company maintains a "GOOD" financial health score according to InvestingPro analysis, with analyst targets ranging from $180 to $195.
The price target increase follows Simpson Manufacturing’s second-quarter 2025 results, which exceeded DA Davidson’s forecasts on both top and bottom lines. The stronger performance was driven by slightly higher than expected North American volumes and more favorable price contributions. The company has demonstrated consistent financial strength, maintaining dividend payments for 22 consecutive years while operating with moderate debt levels.
DA Davidson noted that Simpson Manufacturing’s price implementation appears to be on track, helping the company reaffirm its 2025 EBIT margin outlook, despite downwardly revised market demand assumptions.
The research firm made small adjustments to its forecasts while raising the price target, reflecting increased confidence in forecasts and strong execution by the company. The new $185 price target represents approximately 13 times the firm’s 2026 estimated EBITDA.
Despite the price target increase, DA Davidson maintained its Neutral rating on Simpson Manufacturing, though it acknowledged "an increasingly attractive go-forward setup" for the company. Trading at a P/E ratio of 23.47, the stock currently appears overvalued according to InvestingPro’s Fair Value analysis. Discover more insights and 8 additional ProTips with a comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Simpson Manufacturing reported robust financial results for the second quarter of 2025, surpassing market expectations. The company achieved earnings per share of $2.47, which exceeded the forecasted $2.28. Additionally, Simpson Manufacturing’s revenue reached $631.1 million, outperforming the anticipated $601.8 million. These figures indicate a strong performance for the company during this period. The earnings announcement was met with positive reactions from the investment community. Analysts and investors closely monitor such results as they provide insights into the company’s financial health and operational efficiency. The company’s ability to exceed both earnings and revenue forecasts reflects its effective business strategies and market positioning. These recent developments underscore the importance of quarterly earnings reports in assessing a company’s performance.
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