Bank of America Securities analyst Rafe Jadrosich reiterated a Hold rating on Builders Firstsource yesterday and set a price target of $128.00.

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Rafe Jadrosich has given his Hold rating due to a combination of factors impacting Builders Firstsource. The company reported second-quarter earnings that were in line with expectations, but it reduced its guidance for 2025 EBITDA and revenue due to a decline in single-family and multi-family housing starts. This adjustment reflects a challenging macroeconomic environment and increased competition, which have pressured the company’s margins and sales.

Furthermore, Builders Firstsource is facing a competitive landscape that has led to a reduction in its gross margin guidance. The company is attempting to balance market share and margins by offering bundled products and value-added solutions. Despite these efforts, the near-term outlook remains cautious, with expectations of a decline in EBITDA in the first half of 2026 before a potential recovery in the latter half of the year. Given these factors, Jadrosich maintains a Neutral stance, recognizing the company’s strong long-term positioning but acknowledging the current macroeconomic headwinds.

In another report released yesterday, RBC Capital also downgraded the stock to a Hold with a $129.00 price target.

BLDR’s price has also changed moderately for the past six months – from $167.280 to $127.130, which is a -24.00% drop .

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