
Simpson Manufacturing (SSD) Stock Forecast & Price Target
Simpson Manufacturing (SSD) Analyst Ratings
Bulls say
Simpson Manufacturing Co Inc has demonstrated impressive earnings results, notably driven by a $13 million gain from the sale of its Gallatin, TN manufacturing facility, which underscores the company's ability to generate free cash flow and return capital to shareholders even in a downcycle. The projected growth in the construction market, particularly through increasing market share from 10% to 20% over the next five years, suggests a potential for above-market growth of 100-150 basis points annually, further enhancing revenue prospects. Additionally, the company's efforts to maintain a gross margin of 46.0% in 2024 and aim for a 20% EBIT margin target by 2026 indicate a strategic focus on improving profitability as it leverages its fastest-growing segment, the commercial market.
Bears say
Simpson Manufacturing Co Inc is experiencing downward revisions in its earnings per share (EPS) and EBITDA estimates for 2025 and 2026, with declines of 2% and 1% for 2025, and 4% and 3% for 2026, respectively, indicating potential challenges in maintaining revenue growth against consensus expectations. Management's concerns about a softening construction starts environment, particularly in the Southeast and West regions, suggest that demand for its wood construction products may be weaker than previously anticipated, which could adversely impact future earnings. Additionally, the threat of a prolonged recession or a double dip in the housing market could further pressure sales and pricing, posing significant risks to the company's overall financial stability.
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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