UPDATE: JP Morgan Initiates Armstrong World Industries at Underweight on Sales Mix Headwinds
JP Morgan initiated coverage on Armstrong World Industries (NYSE: AWI) with an Underweight rating and a $47.00 price target.
JP Morgan commented, "While we believe Armstrong possesses several positive fundamental attributes, including leading market positions in mostly well structured industries, as well as pricing power and positive mix in its two largest segments, at the same time, a less favorable sales mix drives our outlook for 2013 sales growth to be only roughly half that of its building product peers. As a result, our 2013E EPS of $2.78 is solidly below the Street's $2.88 consensus. Moreover, we not only believe AWI's growth opportunities are longer term in nature but also represent a negative mix impact to margins over the next 1-2 years."
Armstrong World Industries closed at $54.52 on Monday.
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