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BLD: Future Buybacks And M&A Activity Will Support Balanced Outlook

Analysts Raise TopBuild Price Target as Revenue Outlook Improves and Acquisition Plans Advance

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BLD
AnalystConsensusTarget
Not Invested
Published 22 Aug 2024

Update shared on 09 Dec 2025

Previous
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AnalystConsensusTarget's Fair Value
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1Y
26.1%
7D
-1.1%

Analysts have modestly lifted their price target on TopBuild to approximately 481 dollars per share from prior levels, citing slightly higher expected revenue growth that more than offsets a marginally lower projected profit margin and a modestly reduced future valuation multiple.

What's in the News

  • Raised full year 2025 guidance, now expecting sales between 5,350 million dollars and 5,450 million dollars and estimated net income between 497 million dollars and 542 million dollars (corporate guidance).
  • Completed a share repurchase tranche, buying back 723,272 shares in total, or about 2.54 percent of shares, for 229.09 million dollars under the February 25, 2025 authorization (buyback update).
  • Announced plans to seek acquisitions, supported by a 750 million dollar private offering of senior notes due 2034 priced at 5.625 percent, with proceeds earmarked for general corporate purposes including M and A (financing and M and A strategy).
  • Scheduled an Analyst and Investor Day focused on the company overview, business model, growth drivers, capital allocation approach and long term financial targets (company event).

Valuation Changes

  • Fair Value Estimate: Unchanged at approximately 481 dollars per share, indicating no adjustment to the intrinsic value assessment.
  • Discount Rate: Decreased slightly from about 9.10 percent to 9.09 percent, modestly lowering the required return in the valuation model.
  • Revenue Growth: Increased moderately from roughly 7.6 percent to 8.7 percent, reflecting stronger expectations for top line expansion.
  • Net Profit Margin: Decreased slightly from about 10.1 percent to 9.9 percent, signaling a small anticipated compression in profitability.
  • Future P/E: Decreased slightly from roughly 22.8 times to 22.4 times, implying a marginally lower assumed valuation multiple on future earnings.

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