UPDATE: Citigroup Initiates Armstrong World Industries at Neutral on Valuation
Citigroup initiated coverage on Armstrong World Industries Inc (NYSE: AWI) with a Neutral rating and a $54.00 price target.
Citigroup noted, "We rate Armstrong World Industries (AWI) shares Neutral, as our target price implies fair valuation. While we note that current 2012-13 comparable multiples for AWI appear attractive, our forecasts for slower growth in AWI's revenues and related EBITDA should cause the valuation gap to converge with peers in 2014-15. Drivers for slower-than-peer growth include: (1) limited exposure (of ~10%) to US housing starts, which we expect to recover at a ~22% CAGR in 2013-15; and (2) softness in the flooring segments."
Armstrong World Industries closed at $52.94 on Wednesday.
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