UPDATE: Goldman Sachs Initiates Coverage on Stock Building Supply on Positive Outlook
In a report published Tuesday, Goldman Sachs analyst Samuel H. Eisner initiated coverage on Stock Building Supply Holdings (NASDAQ: STCK) with a Buy rating and $19.00 price target.
In the report, Goldman Sachs noted, “We initiate coverage on STCK with a Buy rating and a $19, 12-month price target. In our opinion, a recovery in single-family housing starts will likely drive a material expansion in the company's EBITDA and EPS. We believe that solid revenue growth will be coupled with an ability to gain market share that should allow STCK to outgrow its end markets. Strong operating performance, in our view, should be primarily driven by SG&A leverage over the medium term. Further, given modest debt levels relative to its competitors, STCK should be able to use its balance sheet to complement strong organic growth with potentially accretive M&A.”
Stock Building Supply Holdings closed on Friday at $14.24.
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