UPDATE - UBS Upgraded Masco (MAS) to Neutral; Valuation Call
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Price: $73.75 --0%
Rating Summary:
14 Buy, 16 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 10 | New: 20
Rating Summary:
14 Buy, 16 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 10 | New: 20
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UPDATE - UBS upgraded Masco (NYSE: MAS) from Sell to Neutral. PT lowered from $8.00 to $7.50.
UBS analyst said, "Since 7/1 MAS has declined 41% vs a 12% decrease in the S&P 500. We believe this underperformance reflects the company’s exposure to the residential repair/ remodel & home construction markets; specifically, its concentration of big ticket items—including cabinets & faucets—which have seen especially weak demand through the slowdown. That said, we believe the current valuation fairly reflects these risks."
"Despite weakened earnings, we continue to expect Masco will generate positive FCF for 2011 & 2012, further bolstering its liquidity position. The company ended 2Q with $1.6bn in cash and a 40% net debt-to-cap. Of the $800mn of debt due 7/12 mgmt plans to pay down a portion using its cash & will refinance the remainder. That said, we do not expect a resumption of share repurchases or higher dividends until conditions in the broader economy stabilize and visibility improves."
To see more ratings changes on MAS, Click Here
UBS analyst said, "Since 7/1 MAS has declined 41% vs a 12% decrease in the S&P 500. We believe this underperformance reflects the company’s exposure to the residential repair/ remodel & home construction markets; specifically, its concentration of big ticket items—including cabinets & faucets—which have seen especially weak demand through the slowdown. That said, we believe the current valuation fairly reflects these risks."
"Despite weakened earnings, we continue to expect Masco will generate positive FCF for 2011 & 2012, further bolstering its liquidity position. The company ended 2Q with $1.6bn in cash and a 40% net debt-to-cap. Of the $800mn of debt due 7/12 mgmt plans to pay down a portion using its cash & will refinance the remainder. That said, we do not expect a resumption of share repurchases or higher dividends until conditions in the broader economy stabilize and visibility improves."
To see more ratings changes on MAS, Click Here
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