UPDATE: Longbow Research Upgrades Beacon Roofing Supply to Buy, Names $42 PT on Attractive Risk/Reward Profile

In a report published Monday, Longbow Research analyst Neil Frohnapple upgraded the rating on

from Neutral to Buy, and named a $42.00 price target. In the report, Longbow Research noted, “We are upgrading Beacon Roofing Supply to a BUY rating as the risk/reward profile for the stock is attractive at current levels. We believe the prospects of accelerating growth and the underperformance of the shares year-to-date present a compelling buying opportunity. We expect a few factors to drive shares higher over the next several months including accelerating revenue growth (above seasonal improvements), improving gross margin (slightly above expectations), and the increasing probability of additional acquisitions on the horizon.” Beacon Roofing Supply closed on Friday at $33.56.