In a report published on Tuesday, Deutsche Bank analyst Nishu Sood initiated coverage on Ply Gem (NYSE: PGEM) with a Hold rating and a $21 price target.
In the report, Deutsche Bank stated, “Plygem has the highest new residential construction exposure of any non- distribution building products company, a seasoned management team and strong market positions; overall, this places the company well to benefit from continued housing recovery. However, we think earnings growth expectations are too high, particularly for operating leverage in 2014 and 2015. In our view this leaves the stock sensitive to disappointments driven by factors such as materials/labor costs, weather, Canadian exposure and mortgage rate sensitivity.”
Ply Gem closed on Monday at $19.15.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Tags: Deutsche Bank, Nishu Sood
Posted in: Analyst Color, Initiation, Analyst Ratings