Builders FirstSource price target raised to $78 from $67 at RBC Capital

RBC Capital analyst Mike Dahl raised the firm’s price target on Builders FirstSource to $78 from $67 but keeps a Sector Perform rating on the shares after its Q4 earnings beat and guidance. The analyst is boosting the firm’s FY23 adjusted EBITDA view by 8% while noting that stronger higher commodity margins should hang around a bit longer. The firm adds however that a neutral stance is warranted by its more cautious views on housing and risks around margin sustainability, though these are largely balanced out by the "robust" free cash flow deployment at Builders FirstSource.