DA Davidson has raised its price objective for Simpson Manufacturing to $200.00 from $190.00 and left its rating on the stock at Neutral. The firm made the adjustment on Wednesday as Simpson shares trade close to a 52-week peak of $206.01, with data showing the stock's RSI currently in overbought territory.
The target increase followed Simpson Manufacturing's fourth-quarter 2025 earnings announcement. DA Davidson described the quarterly results as "better than expected" despite the company confronting tougher volume comparisons year‑over‑year. The research note pointed to the company's cost discipline and benefits from pricing as primary drivers of the stronger performance during the period.
On the company's 2026 outlook, DA Davidson said its operating margin expectation remains consistent with the firm's prior model when certain one-time impacts are excluded. The analyst team raised both earnings-per-share and EBITDA estimates to account for the reported gain on sale and additional interest income items, together with a lower share count, according to the note.
DA Davidson's new $200 price target corresponds to a multiple of 13.5 times its 2026 estimated EBITDA for Simpson Manufacturing.
Separately, Simpson Manufacturing reported its own fourth-quarter 2025 results that exceeded forecasts. The company posted adjusted earnings per share of $1.35, above the $1.22 consensus, and reported revenue of $539.3 million versus an expected $530.7 million.
Following those results, Stephens adjusted its own price target for Simpson Manufacturing upward from $187 to $200 while retaining an Equal Weight rating. Stephens cited stronger-than-expected performance driven by higher pricing in North America and favorable foreign exchange impacts as the rationale for the target change.
Taken together, the analyst updates and the quarterly beat underscore a recent period of stronger financial performance for Simpson Manufacturing and have been reflected in the stock's position near its 52-week high.
Context and market response
- DA Davidson maintained a Neutral view despite lifting the price target, signaling that the firm sees the current valuation as consistent with its risk-reward assessment.
- Adjustments to EPS and EBITDA forecasts were driven in part by non-core items noted in the company's filings, including gains on sale and interest income, as well as a reduced share count.
- Another independent analyst, Stephens, also moved its target to $200 while keeping an Equal Weight stance, highlighting similar upside drivers such as pricing and FX.