Jefferies Raises Builders FirstSource (BLDR) Price Target, Citing Margin Strength Despite Weak Demand

Builders FirstSource Inc. (NYSE:BLDR) ranks among the stocks to benefit from an onshoring boom. On July 18, Jefferies maintained its Buy rating on Builders FirstSource Inc. (NYSE:BLDR) and increased its price target from $137 to $148. According to the firm’s study, prices and margins have remained stable despite market constraints, indicating that although demand for the building materials provider remains soft, it has not gotten worse.

Jefferies pointed out that weaker new residential construction could pose a risk to consensus estimates in the second half of the year, though it adds that the lower end of Builders FirstSource’s guidance continues to be attainable.

The research firm identified a number of possible tailwinds for the sector, such as recent drops in the price of natural gas in the United States and Europe, a depreciating dollar, and higher prices in North America.

Builders FirstSource Inc. (NYSE:BLDR) produces and distributes building materials, manufactured components, and construction services to professional homebuilders, subcontractors, remodelers, and consumers.

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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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