UPDATE: Stifel Nicolaus Initiates Buy, $17 PT on Caesarstone; Valuation Cheap

Stifel Nicolaus initiates its coverage on Caesarstone Sdot-Yam

with a Buy rating and a price target of $17 per share on valuation that is cheap for the growth and returns. Stifel Nicolaus says, "Despite superior growth and returns to our building product peers, this valuation goal remains below the industry averages, which hover around 8.5x 2013 figures. Obviously, the company's size, manufacturing base in Israel, and investors' relative unfamiliarity with the company's product weigh on valuation. We estimate revenue and adjusted EBITDA growth in 2012 will both exceed 15%." CSTE closed at $12.38 on Monday.