Citigroup Reiterates Neutral Rating, $57 PT on Carlisle Companies

In a report published Monday, Citigroup reiterated its Neutral rating and $57.00 price target on Carlisle Companies CSL. Citigroup noted, “Carlisle is still below-average on key operating metrics vs its MI-EE peers, though performance has improved markedly over the past year due to some portfolio reshaping and the Carlisle Operating System. Five-year average margins are in the bottom quarter of the MI-EE sector at 9%, and five-year ROIC of 11.9% is below the 13.6% average. Dry weather played a role in the soft 2Q12 results (roofs don't leak until it rains) but a malaise in non-resi construction is also dampening Carlisle's sales. The past two price increases have not stuck as competitors are becoming more aggressive to maintain volumes. Our leading index of factors impacting roofing demand, comprising the ABI, Dodge orders, and weather data, point to further slowing in roofing sales in 2H12.” Carlisle Companies closed on Friday at $55.19.