UPDATE: Wedbush Initiates Coverage on Quanex Building Products Corporation with Outperform Rating, $21 PT on Continued Recovery

In a report published Thursday, Wedbush analyst Al Kaschalk initiated coverage on

with an Outperform rating and $21.00 price target. In the report, Wedbush noted, “NX is cyclical play on the North American fenestration market given the recovery underway in the residential construction sector for new construction and repair and remodeling. We believe NX can achieve organic growth in its domestic and international customer base and through new market opportunities from secular demand in next-generation energy efficiency products. Further, operational initiatives and lowered fixed costs in both Engineered Products (EP) and Nichols Aluminum segments benefit margins in the current cycle.” Quanex Building Products Corporation closed on Wednesday at $17.76.