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Builders FirstSource Hits 52-Week Low, RBC Downgrades
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Builders FirstSource shares have tumbled amid rising mortgage rates, weak housing demand and concerns about shrinking margins; RBC downgraded the company and cut its price target, warning that a housing recovery may be delayed and earnings forecasts are too optimistic. A discounted-cash-flow analysis suggests the shares may be worth more than their current price, but that estimate depends on sustained cash generation through a difficult construction cycle.
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