SITE - Survey prompts Baird to raises on building products distributors

The completion of its fourth-quarter Industrial Distribution survey has Baird updating its thoughts on building products distributors, as well as a couple of price target changes. Strong channel checks in its Roofing Survey lead the firm to raise its quarterly residential organic sales estimate for Beacon Roofing Supply (BECN), to 15% growth year-over-year vs. 11% previously - and to raise its nonresidential growth, to -8% from -12%. Along with "fine-tuning" depreciation/amortization, Baird is also raising its Q1 EPS estimate to $0.57, and its 2021/2022 estimates go to $3.09 and $3.38. And it's raising its price target to $50 from $48, now implying 23% upside. It's also giving similar boosts to SiteOne Landscape Supply (SITE). Accounting for December and January acquisitions, it still expects Q4 EPS of -$0.03, but moves its 2021 and 2022 estimates to $2.88 and $3.18 respectively. That company gets a price target increase to $167 from $140,

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Survey prompts Baird to raises on building products distributors