10:34 AM EDT, 09/15/2025 (MT Newswires) -- Builders FirstSource's ( BLDR ) sales volumes may be challenged in the near term and into 2026 amid "persistent" new home inventories and lower lumber prices, Wedbush Securities said in a note Monday.

The brokerage said that the macro outlook for Builders' core sales channel of single family starts doesn't look "promising" for the remainder of 2025 and 2026.

The firm said that lumber prices have not risen following the increase in Canadian import duties as it anticipated, which "may be a drag" on Q3 results.

Wedbush downgraded its rating on the stock to neutral from outperform while maintaining a $145 price target.

Shares were down 1.5% in recent early trading.

Price: 140.63, Change: -2.10, Percent Change: -1.47