UPDATE: Imperial Capital Initiates Quanex Building Products at In-Line on Favorable Outlook

Imperial Capital initiated coverage on Quanex Building Products

with an In-Line rating and a $21 price target. Imperial Capital noted, "Residential construction market appears to have bottomed and is in the early stages of a growth phase. Quanex's revenues and earnings are closely tied to the residential remodeling (70%) and new home construction (30%) markets, which seem to be in the early stages of a recovery. While it is difficult to predict the timing and magnitude of a full rebound in residential construction, we believe the trough activity has already occurred and we expect moderate growth from current levels over the next few years." Quanex Building Products closed at $21.02 on Wednesday.