Masonite's Margins To Remain Strong Despite Demand Issues, Analyst Highlights Acquisition Synergies, Robust FCF
Portfolio Pulse from Nabaparna Bhattacharya
Stephens analyst Trey Grooms has reiterated an Overweight rating on Masonite International Corporation (NYSE:DOOR), raising the price target to $130 from $110. Despite a 3% decline in net sales in Q2 due to soft end-market demand, the company's EBITDA was ahead of expectations. The analyst expects Masonite's margins to expand due to cost reduction efforts and the realization of Endura acquisition synergies. However, the analyst has lowered sales estimates for Q3, FY23, and FY24 due to the challenging demand environment.
August 10, 2023 | 8:36 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Despite a challenging demand environment, Masonite's margins are expected to expand due to cost reduction efforts and the realization of Endura acquisition synergies. The company's price target has been raised to $130 from $110.
The analyst's reiteration of an Overweight rating and increase in price target indicates a positive outlook for Masonite. Despite lower sales estimates, the expected margin expansion due to cost reduction efforts and acquisition synergies could drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100