UPDATE: Stifel Reiterates on Headwaters Following Company Analyst Day

In a report published Monday, Stifel analyst John Baugh reiterated a Buy rating on Headwaters HW, and raised the price target from $14.00 to $16.50. In the report, Stifel noted, “The dynamics for the fly ash business are setting up very favorably as we have discussed in previous notes. Demand is increasing, supply is ample, concrete prices are rising which supports fly ash price increases, and the regulatory front is clarifying/improving. The building products segment is being held back by a sluggish recovery in repair and remodel spending but the company is growing its distribution and product capabilities that should drive above industry growth. We are adjusting our March quarter estimates lower to reflect the poor weather to date in the quarter. "Nonetheless, we continue to see demand rebounding sharply once the weather breaks. We are not appreciably changing our annual forecast as the HCAT energy business is poised to exceed our forecast due to new business developments. The outlook for fly ash is very positive but this business is heavily seasonally oriented to the June and September quarters.” Headwaters closed on Friday at $13.32.