UPDATE: Credit Suisse Initiates Ply Gem Holdings on Significant Revenue Growth and Operating Leverage

In a report published Tuesday, Credit Suisse analyst Dan Oppenheim initiated coverage on Ply Gem Holdings PGEM with a rating of Outperform and a $27 price target.

In the report, Credit Suisse stated, “We expect PGEM to generate significant revenue growth and operating leverage through 2015, driven by (1) a continued recovery in new construction (driver of 50% of revenue), (2) accelerating remodel spending (driver of 50% of revenue), and (3) new products and cross-selling opportunities via recent acquisitions. Our $27 target is based on 10 times our 2014E EBITDA, supported by our DCF. We see 34% upside potential from current levels.”

Ply Gem Holdings closed on Monday at $20.15.