Beacon Roofing Supply (NASDAQ:BECN) was reiterated at Benchmark with a Buy rating and $140 price target. Last week, the company delivered solid fourth-quarter 2024 results, meeting analyst expectations despite facing macroeconomic headwinds and seasonal slowdowns in the latter half of the quarter.
Revenue climbed approximately 4.5% year-over-year, while adjusted EBITDA increased by 2.7%, both setting new fourth-quarter records for the company. Although the housing market remains sluggish, with single-family home construction activity subdued and existing home turnover near historic lows, Beacon Roofing Supply is still positioned for growth. Expansion through recent acquisitions and the scaling up of newly developed locations are expected to drive positive performance over the coming year.
Given the uncertain economic environment and a slower-than-anticipated start to the year, estimates have been adjusted downward by $0.50 for both the current and upcoming fiscal year. However, the long-term outlook remains optimistic, supporting the decision to maintain a Buy rating.