SITE - SiteOne Landscape Supply upgraded to Buy at Truist Securities

2023-06-06 12:06:52 ET

SiteOne Landscape Supply ( NYSE: SITE ) on Tuesday was upgraded to Buy from a previous investment rating of Hold by analysts at Truist Securities. They said the distributor of professional lawncare and landscaping supplies is poised for growth in the next economic recovery.

“Consistent organic growth, acquisition gains and market penetration for years to come will continue to power the SiteOne ( SITE ) story in the next cycle,” Keith Hughes, analyst at Truist, said in a June 6 report. “The stock has previously been a favorite of growth investors, which we expect to continue in a new cycle.”

Truist raised its price target for SiteOne ( SITE ) to $177 a share from $157 a share, based on a price-to-earnings multiple of 35 times estimated earnings for 2024.

“With market share of 16%, SiteOne ( SITE ) is still substantially larger than its only substantially growing peer at 5%,” according to Truist. “Other distribution industries we cover have seen market shares reach the 25% range with potential to still grow. Given its first mover advantage, coupled with only one other substantial consolidator, SiteOne’s ( SITE ) ultimate market share could go higher than any of our other distribution stories.”

More about industrial distributors

• Buy stocks of industrial distributors on price weakness: Baird
• Pool raises dividend by 10% to $1.10, adds $413.6M to buyback

For further details see: