RBC downgrades building product companies, flags 2027 headwinds

QXO

07/10/2026 10:25

** RBC Capital Markets downgrades building product firms Builders FirstSource BLDR.N and Owens Corning OC.N to "sector perform" rating from "outperform"  
** Brokerage also downgrades flooring manufacturer Mohawk Industries MHK.N to "underperform" rating from "sector perform", citing weak flooring demand and mounting price and cost pressures
** Shares of BLDR, OC, and MHK down between 1 and 2% premarket
** RBC says new residential construction faces the most risk, while other construction markets remain uneven, and prefers distributors over manufacturers as inflation and cost pressures persist
** Near-term results could be uneven, but the bigger challenges are expected in 2027 because of timing issues, which could cause sharp swings in the stocks - RBC
** Following are the PT revisions on stocks:

Company Name
Previous PT
Current PT
Builders FirstSource
$88
$62
Core & Main
$60
$57
Ferguson Enterprises
$290
$286
Fortune Brands Innovations
$57
$49
Installed Building Products
$228
$208
Masco Corporation
$72
$69
Mohawk Industries
$130
$112
Owens Corning
$172
$127
QXO, Inc
$27
$18
SiteOne Landscape Supply
$135
$124
Whirlpool Corporation
$32
$22
     

 (Reporting by Kanishka Ajmera in Bengaluru)
 ((mail to: Kanishka.Ajmera@thomsonreuters.com))