This is Why SiteOne Landscape Supply, Inc. (SITE) is a Buy on Wall Street

SiteOne Landscape Supply Inc (NYSE:SITE) is one of the best fertilizer stocks to invest in. On December 18, BofA Securities initiated coverage of the stock with a Buy rating and a $147 price target. The positive stance comes from the research firm, echoing the company’s status as the largest wholesale distributor of landscaping supplies in North America.

This is Why SiteOne Landscape Supply, Inc. (SITE) is a Buy on Wall Street

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According to BofA, SiteOne Landscape Supply Inc (NYSE:SITE) controls 18% market share in a fragmented market with significant growth potential. Owing to its edge in the segment, the research firm believes consensus estimates underappreciate the EBITDA margin upside potential, given improvements at the company’s focus branches, which serve as wholesale centers.

On the other hand, the company’s EBITDA estimates for 2026 and 2027 are 3% and 5% above consensus, respectively. Likewise, there are higher projections driven by the expectation of improved EBITDA margins. Nevertheless, the research firm is also wary of deteriorating macroeconomic conditions and elevated SG&A inflation.

Analysts at Barclays have also expressed confidence in the company’s long-term prospects. On December 8, the analysts upgraded the stock to EqualWeight from Underweight and raised the price target to $134 from $120. According to the investment bank, the company has made significant progress on SG&A management. Likewise, it has achieved favorable pricing despite deflationary commodity conditions.

SiteOne Landscape Supply Inc (NYSE:SITE) is the largest national wholesale distributor of landscape, irrigation, and nursery supplies in the U.S. and Canada, serving green industry professionals with a vast product range, including irrigation, fertilizers, hardscape, lighting, tools, and plants.

While we acknowledge the potential of SITE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SITE and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.