Credit Suisse launches coverage on a few building materials companies

  • Swiss credit analyst Daniel Oppenheim launched coverage on a few building products companies.
  • The analyst believes that high housing turnover, strong housing equity and confidence in home values, as well as the age of the housing stock, will drive the growth of building products companies.
  • Hayward Holdings Inc. HAIW was launched with an outperform rating and a price target of $21, implying a 20.4% upside.
  • Oppenheim said Hayward’s growth will come from upgrading and repairing aging equipment.
  • Carlisle Companies, Inc. CSL was launched with a neutral rating and a price target of $275, implying a decline of 0.14%.
  • Oppenheim expects Carlisle’s Vision 2025 plan to focus its capital allocation on growing building envelope solutions.
  • Armstrong World Industries Inc. AWI was launched with an outperform rating and a price target of $120, implying a 30% upside.
  • Oppenheim expects new products, demand for healthy spaces and digital marketing to drive Armstrong’s volume.
  • Trex Company Inc. TREX was launched with an underperforming rating and a price target of $65, implying a decline 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 improvement projects by about 2% in recent years.
  • The analyst believes the cost savings and ease of use of innovative swimming pool equipment will drive continued spending on swimming pools, even in a bleaker economic environment.
  • Price action: HAYW shares are trading up 0.94% at $17.44, CSL down 1.76% at $243.55, AWI down 0.09% at $92.28 and TREX down 3.39% to $65.25 when last checked on Tuesday.

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