Universal Forest Products stock target raised by Benchmark By Investing.com

Benchmark has updated its outlook for Universal Forest Products (NASDAQ: NASDAQ:), increasing the stock’s price target from $133.00 to $155.00 and maintaining a Buy rating. The adjustment follows the company’s announcement of second-quarter results that slightly exceeded market expectations.

Universal Forest Products reported its second-quarter 2024 financial performance on Tuesday, delivering revenue, EBITDA, and earnings per share (EPS) that were modestly above consensus estimates. This was despite ongoing challenges in demand and pricing.

The company’s management provided mixed guidance for the second half of the year, anticipating the retail and packaging segments to continue facing headwinds. However, the manufactured housing sector within the Construction division is expected to be a positive aspect.

Benchmark has revised its EPS projections for Universal Forest Products downward by $0.50 for the current and following year, setting them at $7.50 and $8.50 respectively. The revision takes into account changes in tax rate assumptions.

Despite this adjustment, the analyst believes that the market is beginning to acknowledge that the company’s profitability baseline is significantly higher than it has been in the past.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.