Zacks Reiterates Underperform Rating for Beacon Roofing Supply (BECN)
Beacon Roofing Supply (NASDAQ:BECN)‘s stock had its “underperform” rating restated by Zacks in a note issued to investors on Tuesday. They currently have a $26.00 price objective on the stock. Zacks‘s target price would suggest a potential downside of 8.80% from the stock’s previous close.
Zacks’ analyst wrote, “We are maintaining our Underperform recommendation on Beacon Roofing with a target price of $26.00. Beacon Roofing reported a 2% y-o-y decline in third quarter earnings to $0.54 as a result of lower gross margins from reduced selling prices due to weak demand and a continued unfavorable shift in sales mix to lower margin direct shipment and commercial business. Going forward, Beacon Roofing will benefit from its consistent focus on cost control. Its investments in equipment and inventory, along with employee training and greenfield expansion will drive growth. However, a difficult pricing environment will continue to weigh on gross margins.”
A number of other analysts have also recently weighed in on BECN. Analysts at Robert W. Baird cut their price target on shares of Beacon Roofing Supply from $35.00 to $31.00 in a research note on Friday. They now have a “neutral” rating on the stock. Separately, analysts at JPMorgan Chase & Co. reiterated a “neutral” rating on shares of Beacon Roofing Supply in a research note on Friday. They now have a $33.50 price target on the stock, down previously from $38.00. Finally, analysts at William Blair downgraded shares of Beacon Roofing Supply from an “outperform” rating to a “market perform” rating in a research note on Tuesday, July 8th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $36.08.
Shares of Beacon Roofing Supply (NASDAQ:BECN) traded down 0.84% during mid-day trading on Tuesday, hitting $28.27. 280,811 shares of the company’s stock traded hands. Beacon Roofing Supply has a one year low of $27.45 and a one year high of $41.38. The stock’s 50-day moving average is $29.95 and its 200-day moving average is $34.91. The company has a market cap of $1.395 billion and a price-to-earnings ratio of 25.07.
Beacon Roofing Supply (NASDAQ:BECN) last issued its quarterly earnings data on Friday, August 8th. The company reported $0.54 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.60 by $0.06. The company had revenue of $663.40 million for the quarter, compared to the consensus estimate of $662.94 million. During the same quarter in the prior year, the company posted $0.62 earnings per share. The company’s quarterly revenue was up 5.8% on a year-over-year basis. On average, analysts predict that Beacon Roofing Supply will post $1.36 earnings per share for the current fiscal year.
Beacon Roofing Supply, Inc is a distributor of residential and non-residential roofing materials in the United States and Canada.
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