Deutsche Bank (DB) lowered its price target on shares of Builders FirstSource, Inc. (NASDAQ:BLDR) to $3 from $3.25, while maintaining its "Hold" rating.
Overall, Builders FirstSource finished out 2011 positively with rising sales and gross margin stability. The company was able to report rising sales from a slightly better housing market combined with significant market share gains, DB wrote in a note.
The brokerage noted that gross margins were above 20% for the third quarter in a row and is likely to continue to be stable in 2012.
Lastly, in Q4 the company raised capital, which was necessary so that it can fund short term losses and working capital amidst housing recovery. While positives have emerged BLDR appears fully valued; maintain rating.
BLDR is trading down 0.96% at $3.09 on Monday.