UPDATE: Credit Suisse Initiates Coverage on NCI Building Systems as Non-Res Construction Cycle is Still Getting Started

In a report published Monday, Credit Suisse analyst Daniel Oppenheim initiated coverage on

with an Outperform rating and $21.00 price target. In the report, Credit Suisse noted, “NCI will benefit from the recently started recovery in non-residential construction (still just 24% off the bottom and would need a 51% increase to return to normalized levels), with a 100 mln sq ft increase (12% of current levels) translating into $30 mln of EBITDA for NCI. A return to long-term average construction activity would represent incremental EBITDA potential of approximately $130 million plus additional internal initiatives to augment this growth.” NCI Building Systems closed on Friday at $16.94.