Builders FirstSource initiated with a Buy at UBS

UBS initiated coverage of Builders FirstSource (BLDR) with a Buy rating and $232 price target The growth thesis for Builders FirstSource is solid, with levers for margin expansion, and UBS forecasts a roughly 13% adjusted EPS compound annual growth rate through the end of 2026 and 16% through the end of 2027, and expects the company will expand earnings faster than consensus estimates imply, driving upside to the shares while also supporting potential valuation multiple expansion, the analyst tells investors in a research note. The firm believes current headwinds will subside next year, allowing investors to refocus on the company’s increasing market share opportunity and earnings potential over the next few years.