Stifel raises SiteOne Landscape Supply stock price target to $140 on margin confidence

Published 31/07/2025, 18:46
Stifel raises SiteOne Landscape Supply stock price target to $140 on margin confidence

Investing.com - Stifel has raised its price target on SiteOne Landscape Supply (NYSE:SITE) to $140.00 from $120.00 while maintaining a Hold rating on the stock. The company, currently valued at $6.16 billion, has shown significant momentum with an 8.4% return over the past week.

The firm cited increased confidence in the company’s margin profile as a key factor behind the adjustment, with analysts now estimating FY25 EBITDA of $416 million, up from their previous estimate of $401 million. The company’s current EBITDA stands at $337.8 million, with a healthy gross profit margin of 34.3%.

Stifel noted that SiteOne’s FY25 guidance reiteration was "a clear positive" with improving pricing, market share gains, and SG&A initiatives offering stability despite a difficult operating environment.

The research firm remains cautious, however, stating that its estimates are below consensus as current expectations may not fully reflect risks in an "anemic volume environment" with new construction, which represents 35% of revenue, presenting a key risk for FY26.

While acknowledging that mergers and acquisitions represent potential upside for SiteOne due to consolidation opportunities, Stifel indicated that the company’s "robust valuation suggests shares will continue to trade sideways" despite the increased target price.

In other recent news, SiteOne Landscape Supply Inc. reported its Q2 2025 earnings, which showed a slight miss in earnings per share (EPS) expectations. The company posted an EPS of $2.86, which was below the forecasted $2.98, representing a 4.03% surprise. However, SiteOne did see an increase in net sales during this period. Despite the earnings miss, there was notable investor optimism, as reflected in the stock’s pre-market trading. This optimism is attributed to the company’s strategic initiatives and its current market position. Analysts continue to monitor these developments closely, although no specific upgrades or downgrades were reported in this recent update. These recent developments highlight the importance of ongoing strategic efforts for SiteOne.

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