UPDATE: UBS Starts Armstrong World Industries (AWI) at Sell

January 19, 2022 4:20 PM EST
Get Alerts AWI Hot Sheet
Price: $82.37 --0%

Rating Summary:
    8 Buy, 11 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 2 | Down: 10 | New: 4
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(Updated - January 19, 2022 4:25 PM EST)

UBS analyst John Lovallo initiates coverage on Armstrong World Industries (NYSE: AWI) with a Sell rating and a price target of $103.00.

The analyst comments "We initiate AWI stock at Sell as it currently trades roughly 1.5 standard deviations (STD) above its '13 to date and roughly 1 STD above its late'17 to date (post-announced sale of intl. ops) avg. daily adj. EV/EBITDA multiple based on consensus NTM estimates. Therefore, the ongoing commercial construction recovery appears more than reflected in the current market price. Dodge Data & Analytics forecasts new commercial starts growth of +12% YoY in '22 (+15% YoY in '21e), both on the heels of the COVID-driven -20% YoY decline in '20. While this volume trend is positive and likely to be coupled with improving commercial repair & remodel (R&R) activity (70% of AWI's rev.), continued execution and + mid-SD average unit value (AUV), we believe the industry's recovery path is bound to be bumpy providing a better entry-point in AWI's shares."

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 $105.67 yesterday.


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