- Credit Suisse analyst Daniel Oppenheim initiated coverage on a few building products companies.
- The analyst believes strong housing turnover, significant home equity and confidence in home values, and age of housing stock to drive further growth for building products companies.
- Hayward Holdings Inc (NYSE:HAYW) was initiated with an Outperform rating and a price target of $21, implying an upside of 20.4%.
- Oppenheim stated Hayward's growth would come from upgrading and repairing aging equipment.
- Carlisle Companies, Inc. (NYSE:CSL) was initiated with a Neutral rating and a price target of $275, implying a downside of 0.14%.
- Oppenheim expects Carlisle's Vision 2025 plan to focus its capital allocation toward growing building envelope solutions.
- Armstrong World Industries Inc (NYSE:AWI) was initiated with an Outperform rating and a price target of $120, implying an upside of 30%.
- Oppenheim expects new products, demand for healthy spaces, and digital marketing to grow Armstrong's volume.
- Trex Company Inc (NYSE:TREX) was initiated with an Underperform rating and a price target of $65, implying a downside of 0.4%.
- Oppenheim expects interest in outdoor living spaces to continue. He notes that spending on outdoor living has exceeded spending on other home renovation projects by ~2% in recent years.
- The analyst thinks the cost savings and ease of using innovative pool equipment will lead to continued spending on pools, even in a sluggisher economic environment.
- Price Action: HAYW shares are trading higher by 0.94% at $17.44, CSL lower by 1.76% at $243.55, AWI lower by 0.09% at $92.28, and TREX lower by 3.39% at $65.25 on the last check Tuesday.
