TopBuild stock price target raised to $400 from $360 at Loop Capital

Investing.com - Loop Capital raised its price target on TopBuild Corp (NYSE:BLD) to $400 from $360 on Wednesday, while maintaining a Buy rating on the insulation installer’s stock. The company, currently trading at $356.89 with a market cap of $10.1 billion, has demonstrated strong momentum with a 14.6% gain year-to-date. According to InvestingPro, the company maintains a "GREAT" overall financial health score.

The price target increase follows TopBuild’s acquisition of Progressive Roofing, which Loop Capital views as providing the company with a new growth platform in the commercial roofing installation industry.

Loop Capital noted that the acquisition gives TopBuild entry into a highly fragmented $75 billion market where the top 20 companies hold only about 10% combined market share, creating potential consolidation opportunities.

The firm highlighted that 70% of Progressive’s overall sales come from non-discretionary re-roofing and maintenance services, which expands TopBuild’s recurring revenue concentration.

Loop Capital also pointed to the complementary nature of Progressive’s branch model and supplier overlap with TopBuild’s core insulation business, which could provide long-term procurement synergies.

In other recent news, TopBuild Corp. reported its first-quarter earnings for 2025, exceeding expectations with an earnings per share of $4.63, compared to the forecast of $4.43. The company’s revenue met expectations at $1.23 billion, despite a challenging market environment. In a strategic move, TopBuild announced the acquisition of Progressive Roofing for $810 million in cash, a deal expected to be immediately beneficial to TopBuild’s adjusted earnings per share. Progressive Roofing, known for its commercial roofing installation services, generated $438 million in revenue over the past year. BofA Securities responded to the acquisition by raising TopBuild’s stock price target to $400, maintaining a Buy rating. Meanwhile, S&P Global Ratings revised the recovery rating on TopBuild’s senior notes from ’3’ to ’4’, indicating a lower recovery prospect for unsecured lenders due to increased priority debt. TopBuild’s capital structure now includes a $1 billion revolving credit facility and a $1 billion term loan, among other financial instruments. The company remains confident in its diversified business model and anticipates continued growth in its commercial and industrial sales sectors.

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