UPDATE: Deutsche Bank Initiates Armstrong World Industries at Buy on Expected Turnaround

In a report published Friday, Deutsche Bank analyst Nishu Sood initiated coverage on Armstrong World Industries AWI with a Buy rating and $64.00 price target.

In the report, Deutsche Bank noted, “2013 is the fifth year of the commercial construction downturn, and repeated incorrect calls for recovery have worn investor patience thin. This has left revenue and earnings growth expectations for Armstrong at a low point, as well as valuation multiples. We aren't forecasting an immediate breakout in commercial trends; however, we think that within the next few quarters enough turnaround signs will emerge to increase growth expectations. Increased growth expectations would also normalize Armstrong's valuation multiples with peers', making Armstrong's stock a compelling value. We initiate coverage with a Buy rating and our target price is $64.”

Armstrong World Industries closed on Thursday at $49.80.