UPDATE: Deutsche Bank Lowers PT on Ply Gem Following 2Q Results Miss, Challenges Ahead
In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Ply Gem Holdings (NYSE: PGEM), but lowered the price target from $21.00 to $18.00.
In the report, Deutsche Bank noted, “Poor first post-IPO quarter driven by old and new concerns; maintain Hold. When we initiated coverage of Ply Gem in early July, we cited too high expectations and a potential for disappointment. But even we didn't expect the disappointment to come so soon. 2Q's miss wasn't that large; however, the nature of the miss devastated longer-term expectations. Weather and cost concerns that were supposed to have been factored in drove downside variance, while management's tone on future trends was notably more dour than previously. Without guidance, and with rate concerns growing, we think it could take some time for this stock to get its legs back.”
Ply Gem Holdings closed on Friday at $15.95.
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