Reuben Garner, an analyst from Benchmark Co., maintained the Buy rating on Installed Building Products (IBP – Research Report). The associated price target was lowered to $210.00.
Reuben Garner has given his Buy rating due to a combination of factors that highlight the strong position of Installed Building Products. The company reported robust fourth-quarter results, with EBITDA and EPS surpassing expectations despite a slight revenue miss. This performance is attributed to growth across various markets, positioning IBP to potentially outperform in a challenging first half of 2025. Although there is a cautious outlook for single-family starts and a normalization expected in the multi-family backlog, the company remains optimistic about its market performance.
Another key factor in Garner’s rating is IBP’s solid financial foundation, which supports ongoing mergers and acquisitions, share buybacks, and dividends. The company completed nine acquisitions in FY24, contributing significantly to annual revenues, and it plans to pursue more deals in the future. Additionally, IBP’s strong cash flow generation allows for increased shareholder returns, as evidenced by a new $500 million repurchase authorization and a dividend increase. Despite macroeconomic challenges, such as high interest rates affecting the housing market, IBP’s strategic positioning and financial strength underpin Garner’s positive outlook.
In another report released on February 28, D.A. Davidson also maintained a Buy rating on the stock with a $225.00 price target.