TopBuild stock: DA Davidson reiterates Buy rating after SPI acquisition

Investing.com - DA Davidson has reiterated its Buy rating and $465.00 price target on TopBuild Corp (NYSE:BLD), currently trading at $430.13, following the company’s announcement of a $1.0 billion acquisition of Specialty Products and Insulation (SPI). The stock has shown strong momentum with an 11% gain in the past week, trading near its 52-week high of $445.74.

The acquisition comes after a previous agreement between TopBuild and SPI announced in July 2023 was mutually terminated in April 2024, according to DA Davidson.

The research firm views the deal favorably, citing attractive synergies and TopBuild’s strong track record of integration as positive factors supporting the transaction.

DA Davidson also highlighted the acquisition’s potential to enhance TopBuild’s value proposition with commercial and industrial customers while simultaneously decreasing cyclicality through growing maintenance and repair exposure.

The firm indicated it plans to review and update its forecasts for TopBuild in the coming weeks as it evaluates the full impact of the SPI acquisition.

In other recent news, TopBuild Corp has completed the acquisition of Specialty Products and Insulation (SPI) for $1 billion in an all-cash transaction. This strategic move aims to bolster TopBuild’s presence in the specialty distribution sector and expand its reach in commercial and industrial markets. The acquisition, finalized on October 7, 2025, was funded with cash on hand, including proceeds from a $750 million senior notes issuance in September. SPI, based in Charlotte, North Carolina, reported approximately $700 million in revenue and $75 million in EBITDA for the twelve months ending June 30, 2025.

Following the acquisition, Truist Securities raised its price target for TopBuild to $390, maintaining a Hold rating, citing potential synergies from the deal. Evercore ISI also increased its price target for the company to $449, while keeping an "In Line" rating. Both firms highlighted the acquisition’s potential to generate quick supply-side synergies. TopBuild’s recent pricing of a $750 million senior notes offering at 5.625% is intended to support general corporate purposes, including further acquisitions.

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