Market Overview

JELD-WEN Is A 'Second Half Story,' Wells Fargo Says In Downgrade Note

Share:
JELD-WEN Is A 'Second Half Story,' Wells Fargo Says In Downgrade Note

Despite being a well-run company with “significant long-term potential," the Charlotte, NC-based window manufacturer JELD-WEN Holding, Inc. (NYSE: JELD) may have to wait some time for another catalyst to push the stock in an upward direction, according to Wells Fargo. 

The Analyst

Stephen East of Wells Fargo Securities downgraded JELD-WEN shares from Outperform to Market Perform and lowered the stock’s target price from $45 to $37.

The Thesis

Given the highly competitive nature of the window industry and its exposure to housing market trends, margins are narrow and JELD-WEN has seen its first-quarter margins fall flat, East said in a Wednesday note. (See the analyst’s track record here.)

“We believe that ultimately the window business will have to incent more heavily to recapture lost business," the analyst said.

JELD-WEN is also exposed to risks in international markets, including raw materials costs in Europe as well as a housing recession in Australia, East said. 

Despite the short-term risks and margin pressure, the company, which went public only one year ago, has promising long-term potential, he said. 

“It is likely a second half or later story that requires confidence and patience."

Price Action

At the time of publication, JELD-WEN shares were trading down 3.91 percent at $33.15. The company reported a fourth-quarter earnings miss Wednesday.

Related Links:

Are Baby Boomers Dragging Down The Housing Market?

Real Estate-Focused Mutual Funds On The Rise As Housing Market Continues To Recover

Latest Ratings for JELD

DateFirmActionFromTo
Oct 2019MaintainsNeutral
Oct 2019MaintainsSector Perform
Mar 2019Initiates Coverage OnBuy

View More Analyst Ratings for JELD
View the Latest Analyst Ratings

Posted-In: Stephen East Wells FargoAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (JELD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
CAAPOppenheimerDowngrades
ROSTMKM PartnersMaintains121.0
STAYNomuraDowngrades15.0
ROKUMacquarieMaintains170.0
BJDeutsche BankMaintains27.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Safety First: Why Baird Upgraded MSA Safety Shares

Analyst: For Wolverine World Wide, The 'Heavy Lifting' Is Done