
Simpson Manufacturing (SSD) Stock Forecast & Price Target
Simpson Manufacturing (SSD) Analyst Ratings
Bulls say
Simpson Manufacturing Co Inc has demonstrated resilience during a current economic downcycle, bolstered by a significant $13 million gain from the sale of their Gallatin, TN manufacturing facility, which has positively impacted earnings. The company is expected to enhance free cash flow generation and cash returns to shareholders, positioning itself for above-market growth, particularly in the construction materials segment where they aim to increase market share from 10% to 20% by 2031. Furthermore, management is optimistic about maintaining gross margin levels at 46% in 2024 and returning to a 20% EBIT margin target by 2026, supported by strong performance in the fast-growing construction materials market.
Bears say
Simpson Manufacturing Co Inc is facing downward revisions in its 2025 and 2026 earnings per share (EPS) and EBITDA estimates, with reductions of 2% and 1% for 2025, and 4% and 3% for 2026, indicating potential challenges in maintaining profitability. The company's reliance on the wood products segment exposes it to significant risks associated with a prolonged recession or potential downturn in the housing market, which could depress pricing and demand for its offerings. Additionally, management has acknowledged a softer starts environment and weakened overall demand, particularly in certain regions, which further complicates revenue growth prospects.
This aggregate rating is based on analysts' research of Simpson Manufacturing and is not a guaranteed prediction by Public.com or investment advice.
Simpson Manufacturing (SSD) Analyst Forecast & Price Prediction
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