Beacon Roofing Supply Surpasses Analyst Target Price as Investors Assess Valuation
Recently, shares of Beacon Roofing Supply Inc (Symbol: BECN) traded above the average 12-month target price set by analysts, reaching $123.78 per share. Typically, when a stock meets the target set by analysts, they have two options: downgrade it based on valuation or raise the target price. The decision often hinges on the company’s fundamental developments, suggesting whether it warrants a higher valuation or if the current price indicates an opportunity to cash out.
This average target price of $123.73 incorporates nine different analyst estimates from the Zacks coverage universe. However, this average reflects a range of opinions, with some analysts predicting lower targets, such as $103.00, while others set targets as high as $140.00. The variation here has a standard deviation of $9.673, indicating differing perspectives among analysts.
The purpose of analyzing the average BECN price target is to harness the “wisdom of crowds.” By considering contributions from multiple analysts, investors can gain a broader view compared to relying on a single expert’s opinion. With BECN now trading above the average target, it signals to investors a potential reassessment of the company’s future value. They must decide whether the stock price of $123.73 could lead to even higher targets or if the valuation has reached unsustainable levels, indicating the time may have come to reduce positions slightly.
| Recent BECN Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 2 | 5 | 6 | 7 |
| Buy ratings: | 1 | 2 | 2 | 2 |
| Hold ratings: | 10 | 6 | 5 | 4 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.62 | 2.08 | 1.92 | 1.77 |
The average rating in the table above is based on a scale from 1 to 5, where 1 signifies a Strong Buy and 5 signifies a Strong Sell. This article utilized data from Zacks Investment Research via Quandl.com. For the latest research on BECN, please refer to the Zacks report — available for free.
The Top 25 Broker Analyst Picks of the S&P 500 »
Also see:
Top Ten Hedge Funds Holding JMF
GTY Stock Predictions
HUGS Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
