Bank of America initiated coverage on Masco Corporation (NYSE: MAS) with a Buy rating and a $22.00 price objective.
Bank of America commented, “We like MAS for a few reasons. Its paints, plumbing, and hardware businesses should hold up reasonably well in upcoming quarters given their exposure to “smaller ticket” project spending (versus later cycle, larger ticket projects). In addition, MAS should benefit from a drop-off in investment spending behind growth initiatives. Potential catalysts exist with MAS’ ongoing cabinet and overall restructuring efforts, and we expect intensified focus on SG&A expenses in 2013. And, MAS is a relatively “unloved” stock on the Street at present. Like seemingly every other housing exposed stock, MAS has been on a tear.”
Masco Corporation closed at $17.42 on Thursday.
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Tags: Bank of America
Posted in: Analyst Color, Initiation, Pre-Market Outlook, Analyst Ratings