KeyBanc Upgrades Armstrong World Industries (AWI) to Overweight

August 5, 2016 7:03 AM EDT
Get Alerts AWI Hot Sheet
Price: $39.70 --0%

Rating Summary:
    6 Buy, 7 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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KeyBanc upgraded Armstrong World Industries (NYSE: AWI) from Sector Weight to Overweight with a price target of $50. Analyst Kenneth R. Zener sees attractive risk-reward.

"We upgrade AWI to OW ($50 price target equals 10x FY16 EBITDA) as rising North America demand (up 5% YOY in 1H16 vs. ~1% YOY 2H16 guidance) warrants a NT positive stance, as it may be a cyclical inflection point. AWI's latercycle, NA ceiling tile volumes fell ~29% since 2007, and with widespread 1H16 growth, we prefer to be early to the recovery vs. late. FY16 EBITDA guidance was held steady (~$320M vs. our $326M, FY16 GAAP EPS cut 4% to $2.05$2.25 on interest charges), following 2Q16 $0.56 beat to our $0.50 on higher NA's demand," said Zener.

For an analyst ratings summary and ratings history on Armstrong World Industries click here. For more ratings news on Armstrong World Industries click here.

Shares of Armstrong World Industries closed at $43.00 yesterday.

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