Why Shares of Builders FirstSource Are Soaring Today

Shares of Builders FirstSource (NASDAQ: BLDR) surged more than 13% by 2:30 p.m. EDT on Monday. Driving up the building materials supply company was a string of analyst upgrades following its strong second-quarter results last week.

An analyst at B. Riley FBR upgraded shares of Builders FirstSource from neutral to buy and raised their price target from $19 a share to $30 a share (about 12% above the current price). Driving this bullishness was the company's expectation-beating second-quarter results and strong intermediate-term outlook. The analyst sees rebounding demand for building materials coupled with materially higher lumber prices as catalysts for driving margin improvement over the coming quarters.

Image source: Getty Images.

Source Fool.com