UPDATE: Wedbush Securities Reiterates Outperform Rating, Raises PT on Headwaters Inc. on Improved Mid-Cycle Profile

In a report published Monday, Wedbush Securities analyst Al Kaschalk reiterated an Outperform rating on

, and raised the price target from $18.00 to $20.00. In the report, Wedbush Securities noted, "Reiterate OUTPERFORM as refinancing dramatically lowers borrowing costs improving free cash flow outlook. We continue to view Headwaters (HW) as an attractive investment for investors looking to leverage the improving U.S. residential housing and non-residential construction infrastructure markets. Catalysts supporting our positive outlook beyond the seasonally weakest period include: (i) high-single-digit growth in Heavy Construction Materials (HCM) on cement demand plus net pricing tailwind; (ii) incremental operating leverage within the Light Building Products (LBP) from value-added acquisitions, increased spending in the residential repair and remodel market, and marginal higher new housing starts; and (iii) lowered borrowing costs suggesting improved cash flow to support growth via valued-added niche acquisitions and debt repayment." Headwaters Inc. closed on Friday at $18.22.