KeyBanc Upgrades Armstrong World Industries (AWI) to Buy; Analyst Sees Attractive Entry
Get Alerts AWI Hot Sheet
Rating Summary:
8 Buy, 13 Hold, 2 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE
KeyBanc upgraded Armstrong World Industries (NYSE: AWI) from Hold to Buy with a price target of $63.00.
Analyst Kenneth R. Zener said, "We upgrade Armstrong World Industries, Inc. (AWI-NYSE) to a BUY with a $63 price target, based on: 1) its attractive later-cycle U.S. ceiling tile business currently overshadowed by new plant start-up costs; 2) better clarity on Wood Flooring’s 2H margin recovery (1% margin in FY13 vs. 9% and 8% in FY11 and FY12, respectively) expected during the 1Q call or May 21st analyst day; and 3) already lowered FY14 guidance of $2.55-$2.80 (our estimate is no $2.71) priced in."
"AWI’s pullback is understandable amid downward revisions to earnings, higher startup costs in Ceiling, and a still unclear U.S. ceiling tile volume recovery, but this is why we think now is an attractive entry point, with many negative catalysts already priced in, and its ~20% EBIT ceiling tile business still facing falling U.S. volume amid positive price/mix," he added.
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 $53.66 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: RH, Estee Lauder rise; Tesla falls
- HSBC Upgrades Xinte Energy Co Ltd (1799:HK) to Hold, 'cost cutting efforts likely to keep away from loss making'
- Hennes & Mauritz AB (HMB:SS) (HNNMY) PT Raised to SEK190 at RBC Capital, 'showing some promising signs '
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, UpgradesRelated Entities
KeyBanc, EarningsSign 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!