Builders FirstSource price target raised to $148 from $124 at Truist

Truist analyst Keith Hughes raised the firm’s price target on Builders FirstSource to $148 from $124 and keeps a Buy rating on the shares. The momentum in housing starts will limit 2023 volume weakness heading into a volume growth year in 2024, but the biggest stock specific question for the company remains its go forward gross and EBITDA margins as it comes off the highs for commodity prices, the analyst tells investors in a research note. A higher mix from value-add goods and a larger scale following the BMC Stock Holdings integration should yield results well above pre-COVID, the firm added.