DA Davidson Downgrades Universal Forest Products (UFPI) to Underperform; An Upside Surprise After Lowering Expectations

DA Davidson downgraded Universal Forest Products (NASDAQ: UFPI) from Neutral to Underperform.

DA analyst says, "Q2-11 marks the end of an era at UFPI, with the departure of CEO Mike Glenn and the ascent to the corner office of former EVP and General Counsel Matthew Missad, a 26-year UFPI veteran. UFPI’s ability to recruit from within speaks to the company’s managerial bench strength. We expect Matt Missad will maintain UFPI’s ethos of hard work, minimal waste and aggressive pursuit of lucrative business (as opposed to growth for growth’s sake). Unfortunately, we don’t see any catalysts on the horizon to propel volume, which is what UFPI needs to thrive. With UFPI share price up 25% since the release of Q2 earnings, presumably on short covering, and with the shares trading above our $27 price target, we are downgrading the stock."

For more ratings news on Universal Forest Products click here and for the rating history of Universal Forest Products click here.

Shares of Universal Forest Products closed at $29.13 yesterday.

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