RBC Capital Raises Price Target for Installed Building Products to $184

RBC Capital has maintained an "Underperform" rating for Installed Building Products (IBP) while raising its price target to $184, a 26.90% increase. Loop Capital and Benchmark have also made adjustments to their price targets, with Loop Capital lowering its target to $200 and Benchmark decreasing it to $185. Analysts' 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.

RBC Capital has raised its price target for Installed Building Products (IBP) to $184, a 26.90% increase from its previous target of $145, while maintaining an "Underperform" rating on the stock [1]. This move follows IBP's strong second-quarter results, which included a robust outperformance compared to broader single-family housing weakness. The company's shares are currently trading near their 52-week high of $263.19 [1].

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 [3]. The company also reported a 5.8% increase in net income and a 3.2% increase in adjusted EBITDA [3]. RBC attributed this strength to private builder and regional mix advantages, partially helped by favorable weather and timing factors [1].

Despite the higher price target, 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://finance.yahoo.com/news/installed-building-products-ibp-beats-124502478.html
[3] https://www.investing.com/news/company-news/installed-building-products-reports-31-revenue-increase-in-q2-93CH-4176412