UPDATE: KeyBanc Capital Markets Initiates Coverage on Headwaters Incorporated with Hold Rating

In a report published Wednesday, KeyBanc Capital Markets initiated coverage on Headwaters Incorporated HW with a Hold rating. KeyBanc noted, “We are initiating coverage of Headwaters Incorporated (HW-NYSE) with a HOLD rating. HW is the largest domestic marketer of concrete-grade fly ash through its Heavy Construction Materials segment and a leading producer of residential siding, decorative stone, and concrete block through its Light Building Products segment. We think HW has a good overall portfolio of businesses, which are recovering off cyclically depressed demand levels, led by its 50% exposure to residential markets. The Company's focus on reducing costs should provide solid operating leverage on incremental volume that in time should help reduce high debt leverage, which limits EPS profits near term. We think our outlook is fairly reflected in shares, which supports our HOLD rating for now.” Headwaters Incorporated closed on Tuesday at $6.81.