UPDATE: Credit Suisse Reiterates on Ply Gem as Profitability is Delayed Again

In a report published Monday, Credit Suisse analyst Michael Dahl reiterated a Neutral rating on Ply Gem PGEM, but lowered the price target from $14.00 to $12.00. In the report, Credit Suisse noted, “We are reducing our estimates and lowering our target price to $12 from $14, driven by the sharp weakness in 1Q and our view that while weather has had a significantly negative impact (largely in siding), slowing new construction will also remain a drag at least through 1H'14 (hurting windows). We do not anticipate PGEM will recover all of the weather-related lost sales in 2Q-4Q given the compressed spring season. We now est. adj. EBITDA of ($1) mln in 1Q (consistent with guidance of 0 to slightly negative), $120 mln in FY'14 (from $152 mln), and $170 mln in FY'15 (from $203 mln).” Ply Gem closed on Friday at $11.55.