Stock Price & Analysis

Based on the analysis of options activity, acquisition news, and technical indicators, BECN stock shows bullish signals but faces resistance near $125. Consider holding or selling if targeting profit near current levels.

The price prediction for BECN stock in 2025 is $130. This forecast is supported by BMO Capital's reduced price target from $136 to $130, citing weather-related challenges and soft housing demand. Additionally, the acquisition bid by QXO at $124.35 per share and partnerships like Renovate Robotics contribute to the stock's potential upside.

The S1 support level for BECN Stock is $111.56 ,The R1 resistant level for BECN Stock is $121.14.

As of the end of day on 2025-03-19, the price of BECN Stock was $122.99.

The target price for BECN Stock according to analyst rating is 126.48, with the highest price target at 140.00 and the lowest at 120.00. Analysts have a Moderate Buy rating on BECN Stock overall.

The market cap of BECN is $7.5B.

Analysis and Insights

Valuation Metrics

BECN's current valuation metrics suggest potential overvaluation:

• P/E Ratio (Q4 2024): 17.89, higher than industry averages for building materials companies.
• EV/EBITDA (Q4 2024): 10.41, indicating a premium relative to its earnings generation.
• Price-to-Sales (Q4 2024): 0.66, slightly above peer averages.
• Price-to-Book (Q4 2024): 3.14, reflecting a significant premium to book value.

Technical Analysis

• RSI (14): 60.20, indicating the stock is not yet overbought but is approaching resistance levels.
• Fibonacci Levels: Resistance at $119.78 and $122.40, with support at $115.53.
• MACD: A bullish crossover is forming, suggesting short-term momentum could improve.

Analyst Sentiment

• BMO Capital lowered its price target to $130 from $136, citing near-term challenges in housing demand.
• Stifel downgraded BECN to Hold, noting the stock is fully valued at current levels.
• Benchmark maintains a Strong Buy rating with a $140 target, reflecting optimism in the company's long-term growth.

Event Impact

• The recent acquisition bid by QXO at $124.35 per share highlights BECN's strategic value, but the rejection of the offer and lack of a formal takeover process have increased uncertainty.

Conclusion

BECN appears overvalued based on its elevated P/E and EV/EBITDA ratios, as well as mixed analyst sentiment. While the stock has support from some analysts, the lack of a clear takeover pathway and softening housing demand could limit near-term upside.

Beacon Roofing Supply, Inc. is a distributor of roofing materials and complementary building products, such as siding and waterproofing in North America. The Company’s product lines are designed to meet the requirements of its residential, non-residential, and complementary building products customers. It maintains a fleet of 1,667 straight trucks, 742 tractors and 985 trailers. Its various delivery vehicles are equipped with specialized equipment, including 2,380 truck-mounted forklifts, cranes, hydraulic booms, and conveyors. Its private label brand includes TRI-BUILT. In the residential market, its main product is asphalt shingles. In the non-residential market, single-ply membranes, insulation, and accessories are its main product offerings. The Company serves professional contractors, home builders, building owners, lumberyards, and retailers the United States and Canada who depend on reliable local access to building products for residential across and non-residential projects.

BECN stock is predicted to reach $175 by 2030, driven by strong growth in its core roofing and building products business. The company's strategic expansion and potential market share gains position it for sustained growth.

BECN has a total of 8063 employees.