© Reuters. D.A. Davidson starts Installed Building Products (IBP) and TopBuild (BLD) at Buy
D.A. Davidson analysts initiated research coverage on Installed Building Products (NYSE:) and TopBuild Corp. (NYSE:) on Monday.
IBP was started at Buy, with a price target of $275.
“While shares of IBP have enjoyed a strong run over the last year and YTD, we see a constructive 2024 operating backdrop in which the company can deliver DD top- and bottom-line growth,” the analysts said in the note.
Furthermore, the analysts expect IBP to successfully implement its internal strategies, with potential upward revisions to forecasts thanks to a steady flow of mergers and acquisitions.
Meanwhile, the analysts also rated BLD as Buy and set a target price of $470 for the stock.
“The company has demonstrated the ability to leverage increasing scale within insulation installation and distribution into strong operating leverage and increasingly attractive returns on capital,” they wrote.
“We see a constructive operating environment alongside single-family tailwinds, with an opportunity to replicate the success of the DI acquisition with the pending SPI deal.”
