TopBuild Corp. (NYSE:BLD) Just Reported And Analysts Have Been Lifting Their Price Targets

TopBuild Corp. (NYSE:BLD) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of US$5.2b and statutory earnings per share of US$19.33. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TopBuild after the latest results.

Check out our latest analysis for TopBuild

After the latest results, the eleven analysts covering TopBuild are now predicting revenues of US$5.48b in 2024. If met, this would reflect a satisfactory 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.1% to US$20.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.51b and earnings per share (EPS) of US$20.49 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 12% to US$431despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of TopBuild's earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic TopBuild analyst has a price target of US$469 per share, while the most pessimistic values it at US$383. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that TopBuild's revenue growth is expected to slow, with the forecast 5.6% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Compare this to the 93 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.1% per year. So it's pretty clear that, while TopBuild's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on TopBuild. Long-term earnings power is much more important than next year's profits. We have forecasts for TopBuild going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for TopBuild you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.