BMO Capital analyst Ketan Mamtora has maintained their bullish stance on BECN stock, giving a Buy rating yesterday.
Ketan Mamtora has given his Buy rating due to a combination of factors influencing Beacon Roofing Supply’s current and future performance. Despite a challenging start to 2025, largely due to adverse weather conditions and a soft housing demand, Mamtora maintains a positive outlook on the company’s intrinsic value, which he estimates to be in the mid-$130s per share. This valuation is supported by a healthy balance sheet and strategic initiatives that are expected to drive growth.
Mamtora acknowledges the near-term difficulties, including a decline in organic volumes and a seasonal slowdown in demand, particularly in the North and West regions. However, he highlights the company’s strong gross margin performance and the positive impact of increased digital and private label sales. Additionally, Beacon Roofing Supply’s plans for cost savings and benefits from prior mergers and acquisitions are expected to contribute to its financial performance, reinforcing Mamtora’s confidence in the company’s long-term potential.
Mamtora covers the Industrials sector, focusing on stocks such as Beacon Roofing Supply, Louisiana-Pacific, and Masco. According to TipRanks, Mamtora has an average return of 16.6% and a 70.41% success rate on recommended stocks.
In another report released yesterday, Benchmark Co. also reiterated a Buy rating on the stock with a $140.00 price target.
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