Wedbush Upgrades Headwaters (HW) to Outperform; Sale of Coal Biz a Positive; Accelerated Debt Repayment on the Horizon
Tweet
Share
E-mailGet Alerts HW Hot Sheet
Price: $24.24 --0%
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 13 | New: 26
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 13 | New: 26
Join SI Premium – FREE
Wedbush upgraded Headwaters (NYSE: HW) from Neutral to Outperform, price target raised $1 to $5.
Wedbush analyst says, "We are upgrading shares of Headwaters to following the company’s Q4:11 results and progress on the sale of non-core assets. Our upgrade is predicated on the following: (i) the sale of noncore assets could generate $25-40 million in cash proceeds by mid-2012 and accelerate debt repayment; (ii) the decelerating volume decline and recent margin performance in its Light Building Products (LBP) and Heavy Construction Materials (HCM) suggest excess activity has probably been flushed out of the system; and (iii) the restructuring efforts in LBP are largely completed, suggesting operating results could show an inflection point on flat volume comps and negative macroeconomic headlines. With the aforementioned providing a near-term inflection point, we believe shares offer a favorable risk/reward profile at current levels and would be BUYERS of the stock."
For an analyst ratings summary and ratings history on Headwaters click here. For more ratings news on Headwaters click here.
Shares of Headwaters closed at $2.37 yesterday.
Wedbush analyst says, "We are upgrading shares of Headwaters to following the company’s Q4:11 results and progress on the sale of non-core assets. Our upgrade is predicated on the following: (i) the sale of noncore assets could generate $25-40 million in cash proceeds by mid-2012 and accelerate debt repayment; (ii) the decelerating volume decline and recent margin performance in its Light Building Products (LBP) and Heavy Construction Materials (HCM) suggest excess activity has probably been flushed out of the system; and (iii) the restructuring efforts in LBP are largely completed, suggesting operating results could show an inflection point on flat volume comps and negative macroeconomic headlines. With the aforementioned providing a near-term inflection point, we believe shares offer a favorable risk/reward profile at current levels and would be BUYERS of the stock."
For an analyst ratings summary and ratings history on Headwaters click here. For more ratings news on Headwaters click here.
Shares of Headwaters closed at $2.37 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi Upgrades Cochlear Ltd. (COH:AU) to Neutral
- Barclays Upgrades Schott Pharma AG (1SXP:GR) to Overweight
- Citi Upgrades a2 Milk Co (A2M:AU) (ACOPF) to Buy
Create E-mail Alert Related Categories
UpgradesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
