Market Overview

UPDATE: Goldman Sachs Initiates Armstrong World Industries at Neutral on Peaking Incremental Margins

Related AWI
Benzinga's Top Downgrades
Citigroup Downgrades Armstrong World Industries To Neutral

Goldman Sachs initiated coverage on Armstrong World Industries Inc (NYSE: AWI) with a Neutral rating and a $54.00 price target.

Goldman Sachs commented, "Armstrong's end-market exposure is attractive with 70% exposure to commercial construction, which appears to be inflecting, and the remaining 30% predominately tied to US residential repair & remodel. However, incremental margins have peaked as cost-cutting initiatives have ended and SG&A should grow, wood prices are climbing faster than price increases, and start-up costs from its four upcoming new plants will impact results; these occur before Armstrong sees revenue growth from their late cycle products or a Europe turnaround (22% of sales)."

Armstrong World Industries closed at $52.94 on Wednesday.

Latest Ratings for AWI

Oct 2015MacquarieMaintainsOutperform
Oct 2015BarclaysMaintainsEqual-weight
Oct 2015Goldman SachsInitiates Coverage onNeutral

View More Analyst Ratings for AWI
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Initiation Pre-Market Outlook Analyst Ratings


Related Articles (AWI)

View Comments and Join the Discussion!

Get Benzinga's Newsletters