Wedbush upgrades UFP Industries to Outperform on ‘multiple catalysts’

Wedbush upgraded UFP Industries to Outperform from Neutral with a price target of $155, up from $120. The upgrade assumes two of UFP’s three core segments, construction) and retail can post mid-single digit revenue growth in fiscal 2025 with a negligible contribution from packaging, the analyst tells investors in a research note. The firm says packaging should grow in line with U.S. gross domestic product, which is expected to grow 1.8% in 2025 and 2.0% in 2026. The company’s other two segments have the potential for revenue and earnings growth above packaging because of a potential positive inflection in lumber prices, projected mid-single digit single family starts growth in 2025, and a projected positive inflection in the Harvard Leading Indicator of Remodeling Activity next year, contends Wedbush. The firm sees “multiple catalysts” upcoming for UFP Industries.