Deutsche Bank analyst Joe Ahlersmeyer lowered the firm’s price target on PGT Innovations to $26 from $30 and keeps a Buy rating on the shares. Within the repair and remodel sector, the analyst believes low-ticket products and projects could soften in the near term as excess savings "evaporate," impacting demand. He believes inflation’s effect on the end consumer will ultimately weaken manufacturer pricing power across channels as well. This view, along with valuation considerations, drives his downgrade of Fortune Brands Innovations (FBHS) to Hold from Buy and Masco (MAS) to Sell from Hold. On the other hand, high-ticket remodeling may "counterintuitively" hold up better as locked-in homeowners, largely secure in post-pandemic home equity gains, look to make improvements that can improve the eventual selling price of their home, Ahlersmeyer tells investors in a research note.
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