The Globe and Mail reports in its Friday, Aug. 8, edition that Raymond James analyst Daryl Swetlishoff continues to rate Doman Building Materials "strong buy." The Globe's David Leeder writes in the Eye On Equities column that Mr. Swetlishoff boosted his share target by a loonie to $11. Analysts on average target the shares at $9.71. Mr. Swetlishoff says in a note: "While facing the same macro headwinds as other building materials stocks, we rate Doman 'strong buy,' highlighting M&A-led margin expansion and ongoing deleveraging with improved FCF and working capital releases. Reflecting the transformative Oct, 2024, Tucker deal, 2Q25 EBITDA (up 58 per cent year-over-year), FCF (up 97 per cent year-over-year) and revenue (up 29 per cent year-over-year) were all materially higher, implying a 16-per-cent beat on EBITDA and 52 per cent on EPS. Similarly, GM percentage came in at robust 16.1 per cent, beating consensus of 15.7 per cent. ... Doman has delivered strong earnings performance YTD, with half year results representing 77 per cent of FY2024 levels. That said, shares are up just 2 per cent on the year (vs. the TSX up 13 per cent) as seasonal and cyclical end use headwinds have overshadowed M&A earnings accretion."
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