Stifel Canada modestly raised its price target on the shares of Doman Building Materials Group (DBM.TO) by $0.25 to $12.25 and maintained its buy rating following the company's first-quarter results.
Doman Building delivered EBITDA of $68 million which beat consensus by 14.6% driven by strong gross margins of 17.0%, notes analyst Ian Gillies.
While Gillies does not believe this level of gross margins is sustainable, a strong first quarter should position the company to meet the high end of its gross margin guidance of 16.0%, supported by SYP pricing inching higher, by an estimated +6.1% in the second quarter, he writes.
Price: $10.33, Change: $-0.06, Percent Change: -0.58%