UPDATE: Oppenheimer Upgrades Masco Corporation to Outperform, Reiterates $25 PT on Anticipated Continued Benefits

In a report published Tuesday, Oppenheimer analyst Jim Giannakouros upgraded the rating on

from Perform to Outperform, and reiterated the $25.00 price target. In the report, Oppenheimer noted, “We are upgrading shares of MAS to Outperform from Perform, anticipating continued benefits from strong US housing market tailwinds. We ran multiple regressions backtesting MAS revenue sensitivity to fluctuations in 1) US housing starts, 2) existing home prices, 3) existing home sales, and 4) repair/remodel spending, with our resulting model suggesting HSD revenue growth through 2015 is quite achievable. Additionally, our channel checks indicate positive momentum MAS cited in July (+LDD sales growth) persisted through the summer, setting up for a strong 3Q13. Modeling slightly below MAS's incremental margin guide of 30% in '14/'15 may prove conservative, but we remain mindful of price/cost risks and costs related to driving volumes and NPIs (e.g., promotions, advertising, merchandising).” Masco Corporation closed on Monday at $20.47.