Beacon Roofing Supply (BECN) - Bull of the Day

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We have upgraded our recommendation on Beacon Roofing Supply ( BECN ) to Outperform from Neutral with a target price of $29. Second-quarter 2012 earnings were $0.07 per share, beating the Zacks Consensus Estimate for a loss of $0.08. Revenues increased 33.4% to $395.2 million, topping the Zacks Consensus Estimate of $346 million.

Beacon purchased Cassady Pierce Company to expand its business activities, while also augmenting its product portfolio in the lines of building products. It has entered into a new five-year senior secured credit facility that will provide financial stability for future acquisitions, enabling it to pursue growth opportunities.

Moreover, the ramp up in the housing market will benefit the company as demand for roofing and re-roofing activities are on the rise. Our six-month target price is $29, amounting to 18.1x 2012 EPS.
 
BEACON ROOFING (BECN): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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