TopBuild stock price target raised to $425 from $370 at Jefferies
Investing.com
Published Jul 18, 2025 11:17AM ET
Investing.com - Jefferies raised its price target on TopBuild Corp (NYSE:BLD) to $425.00 from $370.00 on Friday, while maintaining a Buy rating on the insulation installation company. The $10.2 billion market cap company, currently trading at $358.08, maintains a "GREAT" financial health score according to InvestingPro analysis.
The firm cited TopBuild's recent Progressive acquisition as a key factor in the price target increase, noting that the deal should enable the company to at least maintain its 2025 EBITDA guidance. The company's current EBITDA stands at $1.03 billion, with analysts maintaining a consensus Buy recommendation and price targets ranging from $310 to $430.
Jefferies acknowledged potential volume challenges in the second half of 2025, as builders lower their outlook on deliveries and insulation distributors continue destocking, which could linger into the third quarter.
Despite these industry headwinds, Jefferies expects TopBuild to manage price-to-cost dynamics "reasonably well" due to its position as a larger buyer of insulation materials. InvestingPro data shows the company's strong liquidity position with a current ratio of 2.02, suggesting robust operational flexibility. Get access to 12+ additional exclusive ProTips and comprehensive analysis with InvestingPro.
The firm also noted that storm activity has been muted in the second quarter, with severe weather reports down 8% compared to historic norms, potentially leading to softer conditions in the second half of the year. The company maintains healthy profitability with a P/E ratio of 18.1 and annual revenue of $5.28 billion.
In other recent news, TopBuild Corp. has completed the acquisition of Progressive Roofing for $810 million in an all-cash transaction. This acquisition introduces TopBuild to the commercial roofing services sector, a market valued at approximately $75 billion. Progressive Roofing, which generated $438 million in revenue and $89 million in EBITDA over the past year, derives about 70% of its revenue from non-discretionary re-roofing and maintenance services. Benchmark, DA Davidson, and Loop Capital have maintained their Buy ratings for TopBuild following the acquisition, with Loop Capital and BofA Securities raising their price targets to $400. Analysts believe that the acquisition provides a strategic growth platform for TopBuild, with Benchmark expecting the deal to be accretive to earnings. DA Davidson noted the potential for significant expansion given Progressive's current operations in only eight states. Loop Capital highlighted the complementary nature of Progressive's branch model with TopBuild's existing business. BofA Securities emphasized the strategic fit of the acquisition, pointing out the opportunity to expand TopBuild's offerings to commercial customers.
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Written By: Investing.com
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