Armstrong World initiated with an Outperform at Credit Suisse » 16:2205/2705/27/20
Credit Suisse analyst…
Credit Suisse analyst Adam Baumgarten initiated coverage of Armstrong World with an Outperform rating and $88 price target. The company is a leading manufacturer in the U.S. ceiling tile/grid industry with a 65% market share, strong pricing power evidenced by the industry raising prices twice per year, and its exclusive distribution, which helps keep out the competition and maintain pricing, the analyst tells investors in a research note. Baumgarten adds that Armstrong's high repair and remodel exposure offers stable demand and resilience during a downturn.
|Over a month ago|
Armstrong World price target lowered to $95 from $100 at SunTrust » 08:2704/2804/28/20
SunTrust analyst Keith…
SunTrust analyst Keith Hughes lowered the firm's price target on Armstrong World to $95 from $100 and keeps a Buy rating on the shares after its "modestly below" consensus Q1 results. The analyst notes that the earnings call commentary suggested that April demand could be down up to 30%, with construction sites closed in several large markets. Hughes adds that while Armstrong World has withdrawn its guidance, the company still offers a "substantial" free cash flow opportunity as the management also announced plans to reduce its capital expenditures.
Armstrong World sees FY20 free cash flow margin of 22%-25% » 06:0904/2704/27/20
"Given external uncertainty and the high levels of variability in our financial scenario modeling, we have withdrawn our financial guidance for 2020. We currently expect, however, to generate a free cash flow margin of 22-25% this fiscal year, consistent with the range of outcomes in our current 2020 models," said Brian MacNeal, CFO of AWI. "With a strong balance sheet, ample liquidity, and no meaningful debt maturities until 2024, we are well positioned to navigate through the impact of COVID-19."
Armstrong World says 'no significant interruptions' to supply chain » 06:0504/2704/27/20
As demand slowed in…
As demand slowed in April, AWI implemented appropriate measures to reduce production and manage inventory while maintaining service levels. The company is also working closely with suppliers and distribution partners to ensure adequate raw material and finished goods inventory at appropriate locations. To date, there have been no significant interruptions in the supply chain. Overall, all of the company's responsive actions are being deployed and phased in a manner designed to maximize safety, minimize disruption and allow for timely and full scale reactivation when market and public health conditions improve. AWI has also taken steps to address the financial implications of COVID-19, including restricting travel, reducing spending, suspending hiring, deferring non-essential and non-growth oriented capital investments, and temporarily suspending the company's share repurchase program. AWI is withdrawing and suspending 2020 financial guidance, but its regular quarterly dividend remains unchanged.
Armstrong World withdraws FY20 guidance due to COVID-19 06:0104/2704/27/20
Armstrong World reports Q1 adjusted EPS $1.10, consensus $1.11 » 06:0004/2704/27/20
Reports Q1 revenue…
Reports Q1 revenue $248.7M, consensus $250.71M.
Fly Intel: Top five analyst upgrades » 10:2304/0204/02/20
DHI, BMY, DIS, SAIC, AWI
Catch up on today's…
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. D.R. Horton (DHI) double upgraded to Buy from Sell at Goldman Sachs with analyst Susan Maklari saying the stock can outperform, even in a weaker demand environment, given D.R. Horton's land profile, with 61% of lots optioned, and below average leverage. 2. Bristol-Myers (BMY) upgraded to Overweight from Equal Weight at Morgan Stanley with analyst David Risinger saying the stock pullback presents an opportunity given the company's relatively good earnings visibility during COVID-19 pandemic. 3. Disney (DIS) upgraded to Overweight from Neutral at Atlantic Equities with analyst Hamilton Faber saying while he has "materially cut" his estimates as he assumes the parks shut down persists for the rest of the fiscal year, underlying advertising declines 10% going forward and cord cutting increases from the June quarter onward due to a lack of fresh content, he also contends that the stock's slide has been overdone with Disney shares down around 35% since the start of the coronavirus crisis. 4. SAIC (SAIC) upgraded to Buy from Hold at Stifel with analyst Joseph DeNardi saying he believes the company can achieve the low-end of its 3%-6% organic growth expectation even with award activity disruptions. 5. Armstrong World (AWI) upgraded to In Line from Underperform at Evercore ISI. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Armstrong World upgraded to In Line from Underperform at Evercore ISI » 06:1704/0204/02/20
Evercore ISI analyst…
Evercore ISI analyst Stephen Kim upgraded Armstrong World to In Line from Underperform with a $77 price target.
Armstrong World upgraded to Buy from Neutral at Nomura Instinet » 09:0603/2703/27/20
Nomura Instinet analyst…
Nomura Instinet analyst Michael Wood upgraded Armstrong World Industries to Buy from Neutral with a price target of $90, down from $95. The analyst expects management to remove 2020 guidance but feels "relatively more confident" in forecasting the company's results compared to the minimal visibility among other residential-heavy stocks. Wood expects investors to pay a premium for Armstrong's "relative defensiveness, focused and high quality senior management, and ability to mitigate volume loss."
Armstrong World upgraded to Hold from Sell at Loop Capital » 08:3903/1703/17/20
Loop Capital analyst…
Loop Capital analyst Garik Shmois upgraded Armstrong World to Hold from Sell with a price target of $83, down from $93. The analyst cites the company's stock price correction and also believes that investors may look for more defensive names, adding that Armstrong World qualifies given its strong balance sheet and cash flow profile along with about 70% of its sales tied to commercial R&R. Shmois believes that Armstrong World will at least perform in line with building product peers in the near term.