Builders FirstSource.

Builders FirstSource Hits 52-Week Low, RBC Downgrades

Builders FirstSource shares have tumbled amid rising mortgage rates, weak housing demand and concerns about shrinking margins; RBC downgraded the company and cut its price target, warning that a housing recovery may be delayed and earnings forecasts are too optimistic. A discounted-cash-flow analysis suggests the shares may be worth more than their current price, but that estimate depends on sustained cash generation through a difficult construction cycle.