JPMorgan Starts Armstrong World Industries At Neutral, But Decreases Price Target

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JPMorgan's Jason Marcus initiated Armstrong World Industries Inc AWI at Neutral and changed the company's price target from $50.00 to $45.00. The price change came in response to the company's spinoff of Armstrong Flooring Inc AFI as of three months ago.

Marcus noted that although he viewed the spinoff "positively," Armstrong World Industries' "international markets should remain challenged this year." Additionally, the analyst pointed to a "favorable ceilings industry structure" resulting in "positive pricing [...] and margin expansion" in the future.

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However, on a North American basis, the Morgan Stanley analyst noted that "construction industry indicators have been mixed over the last six months," which could threaten volume growth beyond 2016.

As a result of the mixed analysis, Morgan Stanley estimates a FY16 EPS of $0.32.

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Posted In: Analyst ColorLong IdeasPrice TargetInitiationAnalyst RatingsTrading IdeasJason MarcusJPMorgan
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