Baird Initiates SiteOne Landscape With Outperform Rating, $38 Target

Investors in SiteOne Landscape Supply Inc SITE have given a collective cheer Monday as the sell side's IPO quiet period expired.

While almost every sell-side firm initiated coverage with a bullish recommendation (Goldman Sachs was the sole Neutral-rated recommendation), one analyst stuck out as the most bullish: Baird's David Manthey, who set a $38 price target on the issue.

Manthey initiated coverage on SiteOne shares with an Outperform rating, and cited "solid recurring revenue base, augmented by organic share gains, M&A, and margin expansion" as leading to "an extremely attractive secular growth story."

"We believe this is the start of a long period of value creation for this formerly captive distributor, and expect outperformance driven by both outsized earnings growth and valuation upside. The stock is a best idea," Manthey said.

Shares of SiteOne last traded at $28.48, up about 1.3 percent for Monday's intraday session.