Citing “sustained volatility” in lumber and building materials prices and “a broader slowdown” in North American housing activity, Raymond James analyst Steve Hansen lowered his rating for Doman Building Materials Group Ltd. (DBM-T) to “market perform” from “outperform.”
“While Doman remains well positioned to weather any slowdown, in our view, we believe it prudent to adopt a more cautious positioning until better visibility emerges with respect to the macro outlook. We will continue to monitor accordingly,” he said.
After trimming his 2022 and 2023 earnings per share projections to $1.07 and 73 cents, respectively, from $1.39 and 83 cents, Mr. Hansen cut his target for Doman shares to $7.50 from $9.50. The current average is $8.43.