UFP Industries price target lowered to $117 from $120 at DA Davidson

DA Davidson lowered the firm’s price target on UFP Industries (UFPI) to $117 from $120 and keeps a Neutral rating on the shares. The company reported in-line Q4 results with a near-term outlook that points to weaker volumes and a competitive price environment continuing into the first half of 2025, and while the firm believe s a stabilization in gross margins is not far off, visibility remains challenged, the analyst tells investors in a research note. UFP’s SG&A reductions and Deckorators wins were bright spots, but even recognizing that near-term cyclical pressures are likely appreciated at this stage, the stock’s valuation at 9-times expected 2025 EBITDA “remains elevated”, the firm adds.