UPDATE: D.A. Davidson Downgrades Simpson Manufacturing to Neutral, Reiterates $35 PT

In a report published Monday, D.A. Davidson & Co. downgraded its rating on Simpson Manufacturing Co.

from Buy to Neutral, and reiterated its $35.00 price target. D.A. Davidson noted, “There is little doubt that the domestic housing market is on the mend, and we fully expect Simpson to be a significant beneficiary of the recovery. At this juncture however, we believe the shares effectively discount the pending housing upturn. To become more constructive from here, we would like to see evidence that margins in Simpson's wood connector business are improving and it is maintaining market share against emboldened rivals, that its forays into concrete and software design are gaining traction, and that it is decisively dealing with non-performing assets. Hopefully management will send a positive message on all fronts, and we can look towards 2014 with greater confidence.” Simpson Manufacturing Co. closed on Friday at $32.52.