UPDATE: Deutsche Bank Cuts Target to $3 on Builders FirstSource

Deutsche Bank lowers its price target on Hold-rated Builders FirstSource BLDR by 25 cents to $3 on rising sales and gross margin stability for 2011. Deutsche Bank says, "The company was able to report rising sales from a slightly better housing market combined with significant market share gains. Gross margins were above 20% for the third quarter in a row and are likely to continue to be stable in 2012. Lastly, in 4Q the company raised capital, which was necessary so that it can fund short term losses and working capital amidst housing recovery. While positives have emerged BLDR appears fully valued." BLDR closed at $3.12 a share yesterday.