KeyBanc Downgrades Quanex Building Products (NX) to Sector Weight
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KeyBanc downgraded Quanex Building Products (NYSE: NX) from Overweight to Sector Weight.
"Our thesis, "7th Inning Stretch", reflects the Building Products’ maturing sequence of growth, led by slowing: 1) existing homes sales; and 2) new starts; amid steady 3) home price gains of 5-6%. We do not forecast a decline in housing activity in 2017 (R&R up ~5%, starts up ~7%), but think the likelihood of falling estimates makes the sector less attractive prospectively. We downgrade 3 stocks (FBHS, PGEM, NX) to Sector Weight as our forward demand drivers (3 above factors ~80% correlated to 9-month forward demand, Fig 1) point to 1H17 growth, not a call on 3Q16 trends," said analyst Kenneth Zener.
Shares of Quanex Building Products closed at $16.90 yesterday.
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