BLD - TopBuild: Insulation Play Has Warmed Up (Rating Downgrade)

2024-03-19 09:49:01 ET

Summary

• TopBuild Corp. is a strong operator benefiting from secular tailwinds in the housing market and increased demand for insulation products.
• The company has experienced impressive growth in sales and margins, driven by organic growth and acquisitions.
• Despite a strong operating performance, TopBuild Corp. shares have seen an even better performance, as the risk-reward no longer looks compelling here.

In August, I called TopBuild Corp. (BLD) a top and well-insulated business. The company is a strong operator, benefiting from secular tailwinds driving the housing market, amidst greater importance of insulation for financial and ESG reasons....

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