Armstrong World Industries (AWI) Rating Increased to Buy at Zacks Investment Research

Armstrong World Industries (NYSE:AWI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The brokerage currently has a $65.00 target price on the construction company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 8.51% from the stock’s previous close.

According to Zacks, “Armstrong World’s first-quarter adjusted earnings per share and revenues both improved on a year-over-year basis but missed the respective Zacks Consensus Estimate. For 2018, the company expects net sales to grow 5-7% aided by a modest upturn in volume and average unit value (AUV) improvement. The company raised EPS guidance to $3.60-$3.82, reflecting a 19-27% growth year over year. Results will also be supported by price increases, strong repair and remodel activity along with the continuation of positive new building construction activity. Productivity improvements in plants and focus on restructuring activities will aid the bottom line. Also, continued sales leverage and capital investments at Tectum will fortify its Architectural Specialty business. Moreover, investment in new products, segment reclassification and strong balance sheet will drive Armstrong World’s growth. Over the past year, the stock has outperformed the industry.”

A number of other analysts have also recently weighed in on the stock. Goldman Sachs raised shares of Armstrong World Industries from a “sell” rating to a “neutral” rating in a research note on Wednesday, April 4th. JPMorgan Chase lowered shares of Armstrong World Industries from a “neutral” rating to an “underweight” rating in a report on Wednesday, March 7th. Stephens reiterated a “hold” rating and set a $64.00 price target on shares of Armstrong World Industries in a report on Thursday, March 1st. SunTrust Banks reiterated a “buy” rating and set a $67.00 price target on shares of Armstrong World Industries in a report on Monday, February 26th. Finally, Jefferies Group reiterated a “hold” rating and set a $66.00 price target on shares of Armstrong World Industries in a report on Wednesday, January 17th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $62.00.

Armstrong World Industries opened at $59.90 on Wednesday, according to Marketbeat Ratings. The firm has a market cap of $3.06 billion, a price-to-earnings ratio of 19.83, a P/E/G ratio of 0.92 and a beta of 1.69. Armstrong World Industries has a fifty-two week low of $58.50 and a fifty-two week high of $59.00. The company has a current ratio of 2.44, a quick ratio of 2.20 and a debt-to-equity ratio of 2.01.

Armstrong World Industries (NYSE:AWI) last posted its earnings results on Monday, April 30th. The construction company reported $0.79 earnings per share for the quarter, missing analysts’ consensus estimates of $0.81 by ($0.02). The company had revenue of $227.30 million for the quarter, compared to the consensus estimate of $231.35 million. Armstrong World Industries had a return on equity of 41.44% and a net margin of 13.54%. The business’s quarterly revenue was up 3.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.55 EPS. sell-side analysts predict that Armstrong World Industries will post 3.7 earnings per share for the current year.

Several large investors have recently modified their holdings of the company. Iridian Asset Management LLC CT lifted its holdings in shares of Armstrong World Industries by 0.9% during the first quarter. Iridian Asset Management LLC CT now owns 4,675,664 shares of the construction company’s stock worth $263,240,000 after purchasing an additional 43,666 shares during the period. BlackRock Inc. lifted its holdings in shares of Armstrong World Industries by 5.7% during the fourth quarter. BlackRock Inc. now owns 2,021,768 shares of the construction company’s stock worth $122,419,000 after purchasing an additional 109,439 shares during the period. Gates Capital Management Inc. acquired a new position in Armstrong World Industries in the fourth quarter valued at $81,031,000. Dimensional Fund Advisors LP lifted its holdings in Armstrong World Industries by 0.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,264,271 shares of the construction company’s stock valued at $71,178,000 after buying an additional 9,990 shares during the period. Finally, First Eagle Investment Management LLC lifted its holdings in Armstrong World Industries by 12.9% in the first quarter. First Eagle Investment Management LLC now owns 1,245,178 shares of the construction company’s stock valued at $70,104,000 after buying an additional 142,645 shares during the period.

Armstrong World Industries Company Profile

Armstrong World Industries, Inc designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildings worldwide. It principally offers mineral fiber, fiberglass wool, and metal ceiling systems. The company produces suspended mineral fiber and soft fiber ceiling systems; suspension system (grid) and ceiling component products; and acoustical ceiling, wall, and structural solutions.

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