CSW Industrials initiated with a Neutral at Citi

Citi initiated coverage of CSW Industrials (CSWI) with a Neutral rating and $466 price target CSW has a “resilient” business model and its focus on high-demand sustainability products should drive continued solid growth moving forward, the analyst tells investors in a research note. However, this is balanced by the stock’s “relatively full” valuation that doesn’t include much room for potential macro or execution risks, the analyst tells investors in a research note. Citi believes the stock’s premium could be at risk if the company faces integration challenges from its acquisitions, sector-specific downturns or slower than expected growth.