UPDATE: JPMorgan Downgrades Ply Gem Holdings to Neutral from Overweight

In a report published Monday, JPMorgan analyst Michael Rehaut downgraded Ply Gem Holdings, Inc. PGEM to Neutral from Overweight. According to the report, the downgrade follows recent operational challenges likely to continue for at least one to two more quarters. “We are downgrading PGEM to Neutral from Overweight, as, following 4Q's negative pre-announcement after the close on Friday, we believe the company's recent operational challenges and lack of near term visibility are likely to continue for at least 1-2 more quarters,” the report noted. “Specifically, PGEM announced preliminary 4Q sales and EBITDA results materially below both our estimates and the Street consensus , with expected 4Q sales of $330-335 million, solidly below our $365 million estimate and the Street's $374 million, and adjusted EBITDA of $15-$17 million, strongly below our $35 million estimate and the Street's $34 million.” PGEM closed Friday at $16.99.