Builders FirstSource resumed with a Buy at Stifel

Stifel resumed coverage of Builders FirstSource (BLDR) with a Buy rating and $175 price target Amid the “robust” valuations prevailing across building products and home improvement, Builders FirstSource’s discounted valuation is “compelling” against Stifel’s long-term enthusiasm, with the firm’s outlook suggesting mid-teens return of market capitalization via share repurchase at current levels, the analyst tells investors in a research note. The firm says the company is well positioned to profitably capitalize on residential construction’s advantaged long-term growth prospects while addressing key customer pain points.