Rafe Jadrosich, an analyst from Bank of America Securities, reiterated the Buy rating on Armstrong World (AWI – Research Report). The associated price target was raised to $168.00.
Rafe Jadrosich has given his Buy rating due to a combination of factors including Armstrong World Industries’ strong financial performance and promising future outlook. The company reported better-than-expected results for the fourth quarter of 2024, surpassing initial guidance with robust organic revenue growth and successful mergers and acquisitions. Furthermore, Armstrong’s management has set a 2025 EBITDA guidance that is 2% above consensus, indicating confidence in continued earnings growth.
Additionally, Armstrong is projected to achieve a sales growth of 9%-11% in 2025, driven by a favorable mix of pricing and M&A activities. The company’s innovative product, Templok, presents a long-term growth opportunity with potential tax credits and government approval, which could significantly boost volume and average unit value. Despite anticipated cost increases, Armstrong is expected to expand its margins, making its valuation attractive compared to other companies in the building products sector.
According to TipRanks, Jadrosich is a 4-star analyst with an average return of 8.0% and a 53.82% success rate. Jadrosich covers the Consumer Cyclical sector, focusing on stocks such as Somnigroup International, DR Horton, and Toll Brothers.