Loop Capital Downgrades Installed Building Products (IBP) to Hold

Loop Capital downgraded its rating for Installed Building Products (IBP) from "Buy" to "Hold" on August 8, 2025. No changes were made to the price target. This follows previous ratings, including a "Buy" rating with a lower price target from Benchmark in May 2025. IBP is an insulation installer and diversified installer of complementary building products in the US, with a majority of revenue from its Installation segment. The average one-year price target is $215.00, with a high estimate of $290.00 and a low estimate of $175.00. The average brokerage recommendation is currently 2.8, indicating a "Hold" status. The estimated GF Value for IBP in one year is $162.58, suggesting a downside of 36.3% from the current price of $255.21.

Loop Capital has downgraded its rating for Installed Building Products (IBP) from "Buy" to "Hold" on August 8, 2025. The analyst firm did not adjust the price target, which remains at $255.00. This latest move follows previous ratings, including a "Buy" rating with a lower price target from Benchmark in May 2025 [3].

IBP, an insulation installer and diversified installer of complementary building products in the US, reported strong earnings for Q2 2025. The company's net revenue increased by 3.1% to a record $760.3 million, while adjusted EPS was $2.95, surpassing expectations [2]. The company's robust performance is attributed to significant growth in its single-family and multi-family organic sales, driven by positive residential growth and increased demand in the multi-family insulation segment [1].

Despite the positive earnings report, Loop Capital believes that the stock's risk-reward profile is balanced at current levels. The analyst firm suggests that investors should maintain a cautious stance, given the potential downside indicated by the estimated GF Value of $162.58 for IBP in one year, which implies a downside of 36.3% from the current price of $255.21 [3].

IBP's strong financial performance and acquisition strategy, such as the recent acquisition of Pro Foamers, Inc., have contributed to its growth. The company continues to prioritize profitable growth and has a stock repurchase program with approximately $416.5 million available under it [2]. However, the downgrade from Loop Capital indicates that investors should closely monitor the stock's performance and consider the potential risks associated with the current market conditions.

References:
[1] https://www.tipranks.com/news/the-fly/installed-building-products-cut-to-hold-at-loop-capital-on-balanced-risk-reward-thefly
[2] https://www.ainvest.com/news/installed-building-products-reports-q2-2025-net-revenue-increase-3-1-760-3-million-2508/
[3] https://www.marketbeat.com/instant-alerts/installed-building-products-nyseibp-downgraded-by-loop-capital-to-hold-2025-08-08/