Market Overview

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

Related AWI
Benzinga's Top Downgrades
Barclays Downgrades Armstrong World Industries To Equal-weight
When Rate Hikes Come, They Will Ripple Across U.S. Economy (Fox Business)

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

DateFirmActionFromTo
Nov 2014Bank of AmericaDowngradesBuyUnderperform
Oct 2014BarclaysDowngradesOverweightEqual-weight
Oct 2014CitigroupMaintainsBuy

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)

Around the Web, We're Loving...

Get Benzinga's Newsletters