Credit Suisse Initiates Coverage On Few Building Products Companies

Credit Suisse analyst Daniel Oppenheim initiated coverage on a few building products companies.
The analyst believes strong housing turnover, significant home equity and confidence in home values, and age of housing stock to drive further growth for building products companies.
Hayward Holdings Inc HAYW was initiated with an Outperform rating and a price target of $21, implying an upside of 20.4%.
Oppenheim stated Hayward's growth would come from upgrading and repairing aging equipment.
Carlisle Companies, Inc. CSL was initiated with a Neutral rating and a price target of $275, implying a downside of 0.14%.
Oppenheim expects Carlisle's Vision 2025 plan to focus its capital allocation toward growing building envelope solutions.
Armstrong World Industries Inc AWI was initiated with an Outperform rating and a price target of $120, implying an upside of 30%.
Oppenheim expects new products, demand for healthy spaces, and digital marketing to grow Armstrong's volume.
Trex Company Inc TREX was initiated with an Underperform rating and a price target of $65, implying a downside of 0.4%.
Oppenheim expects interest in outdoor living spaces to continue. He notes that spending on outdoor living has exceeded spending on other home renovation projects by ~2% in recent years.
The analyst thinks the cost savings and ease of using innovative pool equipment will lead to continued spending on pools, even in a sluggisher economic environment.
Price Action: HAYW shares are trading higher by 0.94% at $17.44, CSL lower by 1.76% at $243.55, AWI lower by 0.09% at $92.28, and TREX lower by 3.39% at $65.25 on the last check Tuesday.