
Simpson Manufacturing (SSD) Stock Forecast & Price Target
Simpson Manufacturing (SSD) Analyst Ratings
Bulls say
Simpson Manufacturing Co Inc experienced a notable boost in earnings due to a gain from the sale of its Gallatin, TN manufacturing facility amounting to $13 million, indicating strong financial management even during a downcycle. The company is projected to sustain impressive free cash flow generation and cash returns to shareholders while targeting a significant increase in market share within its customer base over the coming years, which could translate to above-market growth rates of 100-150 basis points annually. Additionally, with gross margin levels expected to remain robust at 46.0% for 2024 and a goal to return to a 20% EBIT margin by 2026, management's focus on the fast-growing commercial market (CM) segment is likely to further drive financial performance and long-term profitability.
Bears say
Simpson Manufacturing Co Inc is facing a challenging outlook due to anticipated revenue declines stemming from a potential prolonged recession and a double dip in the housing market, which could negatively impact demand and pricing for its wood construction products. Recent financial estimates reflect this concern, with the company's projected 2025 and 2026 earnings per share (EPS) and EBITDA metrics lowered by 2% and 1% in 2025, and 4% and 3% in 2026, compared to consensus expectations. Additionally, the company is experiencing softer activity levels in the construction sector, particularly in specific regions, indicating a weakening overall demand despite not yet reflecting the severe downturns seen in the broader market.
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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