UPDATE: D.A. Davidson Initiates Encore Wire at Neutral on Appealing Long-Term Investment Thesis

In a report published Tuesday, D.A. Davidson analyst Brent Thielman initiated coverage on Encore Wire WIRE with a Neutral rating and $35.00 price target.

In the report, D.A. Davidson noted, “Encore Wire (Encore) is a leading domestic manufacturer of electrical building wire and cable. The products are used in commercial and industrial buildings as well as residential applications across the United States. Encore has grown entirely on an organic basis to over $1 billion in sales last year, performing all manufacturing functions from a single site in Texas. Over the past decade, Encore has generated respectable growth metrics and financial returns relative to public wire and cable industry peers and other electrical products manufacturers. In an industry with limited product differentiation, this performance is particularly notable and reflects a well-executed strategy with solid leadership. Encore boasts an impressive track record and should be a significant beneficiary of a recovery in construction activity, particularly non-residential, which we believe is still in the very early stages of a multi-year recovery. Given its historical success in leveraging cyclical upturns, Encore's long-term investment thesis is appealing.”

Encore Wire closed on Monday at $33.88.