UPDATE: D.A. Davidson Reiterates Buy Rating, Raises PT on Mueller Water Products
In a report published Monday, D.A. Davidson & Co. reiterated its Buy rating on Mueller Water Products (NYSE: MWA), and slightly raised its price target from $6.00 to $7.00.
D.A. Davidson noted, “A wide range of companies stand to benefit from a cyclical upturn in housing and other construction activities and many construction products/materials suppliers (including MWA) have seen multiples expand over the last several months as investor optimism in a recovery is increasing. We feel Mueller's established nationwide market positions and considerable pricing power are particularly appealing attributes as new entrants in Mueller's core valve and hydrant lines are unlikely. Consequently, pricing risk is very low while leverage to a recovery is strong. We can't say the same for all other housing-levered companies in our coverage universe, particularly those with more commoditized product lines.”
Mueller Water Products closed on Friday at $5.84.
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