Wedbush Securities Reiterates Neutral, Raises Price Target On Quanex Building Products Ahead Of Q1:FY15 Results

In a report published Friday, Wedbush Securities analyst Al Kaschalk reiterated a Neutral rating on

, and raised the price target from $19.00 to $20.00. In the report, Wedbush Securities noted, "Despite positive longer-term outlook and favorable investor meetings, we are maintaining our NEUTRAL rating ahead of Q1:FY15 results which are expected to be in line with expectations. With window shipment volume growth of 6-8% and ongoing investment in its vinyl business in the near term, we believe NX remains on track to deliver improved operating results in FY15. And while we are gaining confidence for a multi-year margin expansion story with higher window shipments, we expect shares to remain range-bound until there is more certainty management can deliver consistent incremental EBITDA margin in the low- to mid-20% range. "As we estimate management has exhausted its remaining dollar value authorized under its share repurchase program during Q1:FY15, we expect the Board of Directors to authorize another share repurchase program in FY15 and such authorization could come at the February Board meeting. Given the lack of immediate-term company-specific catalysts to suggest potential for positive earnings revisions, we view the risk/reward profile as neutral at current levels." Quanex Building Products closed on Thursday at $19.39.