UPDATE: Sterne Agee Initiates Coverage on Universal Forest Products with Buy Rating, $45 PT on Good Growth Position

In a report published Friday, Sterne Agee analyst Jay McCanless initiated coverage on

with a Buy rating and $45.00 price target. In the report, Sterne Agee noted, “We are initiating coverage of UFPI with a Buy rating and a $45 PT. Our PT is a 6.7x EV/EBITDA multiple on our FY14E EBITDA of $121.5 million, which is in line with UFPI's historical mid-cycle EV/EBITDA valuation of 6.0x to 7.5x.” Universal Forest Products closed on Thursday at $38.11.