10:55 AM EDT, 09/19/2024 (MT Newswires) -- Builders FirstSource ( BLDR ) said Thursday that its chief financial officer will assume the chief executive role in November when the building material supplier's current CEO retires.

CEO Dave Rush, who has led the company since November 2022, is retiring after 25 years with Builders FirstSource ( BLDR ). CFO Peter Jackson will be his replacement, effective Nov. 6. Rush will remain on the company's board and serve as an adviser to help with the transition.

Jackson will be replaced at the CFO level by Pete Beckmann, currently Builders FirstSource's ( BLDR ) senior vice president of financial planning and analysis. Beckmann has served with Builders FirstSource ( BLDR ) and legacy companies since 1999, according to the company.

Lower mortgage rates and the CEO transition should bode well for the housing market supplier, Wedbush analysts Jay McCanless and Brian Violino said in a Thursday note. They reiterated an outperform rating on the stock and increased their price target to $230 from $175.

With mortgage rates recently declining to a two-year low, Wedbush sees the shifting market dynamics as an "affordability tailwind for single family housing demand," which makes up roughly 75% of Builder FirstSource's average annual revenue. The company lowered its full-year revenue guidance in August to a range of $16.4 billion to $17.2 billion from an earlier target in the $17.5 billion to $18.5 billion range.

"Assuming mortgage rates stay at or below this level into spring 2025, we see this rapid (and) positive reversal in affordability and a wholly internal management transition as catalysts to raise our (price target) and our valuation framework," McCanless and Violino said.

On Wednesday, the Federal Reserve's monetary policy setting committee voted to lower benchmark interest rates by 50 basis points.

Price: 198.67, Change: +4.15, Percent Change: +2.13