Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Evercore ISI raised its price target on TopBuild Corp (NYSE:BLD) to $449.00 from $424.00 while maintaining an "In Line" rating following the company’s acquisition of Specialty Products and Insulation (SPI). The stock, currently trading at $436.17, is approaching its 52-week high of $445.74, with InvestingPro analysis indicating the stock is slightly overvalued at current levels.
TopBuild, with its robust market capitalization of $12.2 billion and maintaining a healthy financial position with a "GREAT" overall score according to InvestingPro, completed the $1 billion all-cash acquisition of SPI on Tuesday, October 7, 2025. SPI, headquartered in Charlotte, NC, is a leading specialty distributor and fabricator of mechanical insulation solutions serving commercial, industrial, and residential markets across North America.
The acquisition complements TopBuild’s Distribution International business, which the company acquired in October 2021. SPI currently operates 90 branches and employs approximately 1,000 people.
This successful transaction follows a previously terminated agreement between the companies. TopBuild had initially signed a definitive agreement to purchase SPI in July 2023, but that deal was terminated in April 2024 due to antitrust concerns from the Department of Justice regarding SPI’s metal building insulation segment and disagreements on valuation.
The current acquisition excludes the metal building insulation business that had previously raised regulatory concerns, allowing the companies to complete the transaction.
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, finalized on October 7, aims to bolster TopBuild’s position in specialty distribution and enhance its reach in commercial and industrial markets. SPI reported approximately $700 million in revenue and $75 million in EBITDA for the twelve months ending June 30, 2025. The acquisition was funded using cash on hand, including proceeds from a $750 million senior notes issuance priced at 5.625%, which TopBuild announced in September.
The notes, due in 2034, were offered to qualified institutional buyers and certain non-U.S. persons. In a related development, Evercore ISI has adjusted its price target for TopBuild to $425 from $418, maintaining an "In Line" rating. The firm cited improved expectations for same-branch sales growth in the first and second quarters of 2026, driven by a favorable market for residential installations. These developments highlight TopBuild’s strategic financial maneuvers and market positioning.
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