Jefferies analyst Philip Ng says that while Masco's plans to sell its Cabinetry and Windows businesses over the next six-to-nine months will unlock shareholder value, the "lack of clarity around buyers, proceeds, and timing could drive the stock lower today." The stock in morning trading is up 8c to $38.02. The transaction will shed Masco of its more capital intensive and cyclical businesses and leave it with its higher margin Plumbing and Paint businesses, to which investors would ascribe a larger multiple, predicts the analyst. Ng estimates that if the businesses could be sold at ~10 times enterprise value to EBITDA, or after-tax cash proceeds of ~$1.4B, and the proceeds used to buy back shares, it would imply a stock price of $47 for Masco. He keeps a Buy rating on the name.

Loop Capital lowered the firm's price target on Masco to $76 from $79 and keeps a Hold rating on the shares. The company reported a solid beat on the back of stronger-than-expected plumbing margins, but while its FY24 guidance was only reiterated, with no imminent negative change in trend expected in Q2, this outlook is "potentially conservative", the analyst tells investors in a research note. Masco is executing well despite weak volumes, but the firm still wants better visibility as the margin for error with investors has narrowed, Loop added.