RBC Capital Raises Installed Building Products Price Target to $184, Maintains Underperform Rating

RBC Capital raised Installed Building Products' (IBP) price target to $184 from $145, maintaining an Underperform rating. The firm views the stock's rally as overbaked due to high valuation and a projected down year-over-year FY26 performance.

RBC Capital has increased its price target for Installed Building Products (IBP) to $184 from $145, while maintaining an Underperform rating on the stock. The move comes after IBP reported strong second-quarter results, with revenue increasing by 3.1% to a record $760.3 million [4]. The company also saw a 5.8% increase in net income and a 3.2% increase in adjusted EBITDA [4].

The price target increase reflects RBC's assessment of IBP's recent financial performance, including a 3.1% increase in second-quarter revenue to a record $760.3 million [4]. However, RBC Capital expressed caution about IBP’s future performance, expecting "sharply worsening lagged single-family declines" to more meaningfully impact the company in the second half of 2025 and into 2026 [1]. The research firm characterized Friday’s stock rally as "overbaked," noting that IBP’s valuation has reached an all-time high at 16 times EBITDA while facing the prospect of year-over-year declines in 2026 [1].

Other analysts have also made adjustments to their price targets. Loop Capital lowered its target to $200, while Benchmark decreased it to $185. The average target price for IBP is $215, with a high estimate of $290 and a low estimate of $175, implying a 15.34% downside from the current price of $253.95 [2].

Investors should monitor IBP closely, as its performance is expected to be influenced by broader industry trends and the company's ability to navigate challenges such as housing affordability and operating expenses. The company's recent earnings reports and acquisitions, such as Pro Foamers, Inc., indicate a focus on growth and operational efficiency.

References:
[1] https://www.investing.com/news/analyst-ratings/installed-building-products-stock-price-target-raised-by-rbc-capital-93CH-4180964
[2] https://www.ainvest.com/news/rbc-capital-raises-price-target-installed-building-products-184-2508/
[3] https://www.investing.com/news/company-news/installed-building-products-reports-31-revenue-increase-in-q2-93CH-4176412
[4] https://www.investing.com/news/company-news/installed-building-products-reports-31-revenue-increase-in-q2-93CH-4176412