Strong cabinet sales bode well for American Woodmark, Fortune Brands Home, says Jefferies

American Woodmark

02/09/2022 12:30

** Brokerage Jefferies says American Woodmark  AMWD.O  and
Fortune Brands Home & Security  FBHS.N  should be able to drive
margin expansion in H2 2022 as cabinet pricing remains strong
    ** July cabinet sales jumped ~20% driven entirely by price,
according to survey by Kitchen Cabinet Manufacturers Association
    ** Given the bigger ticket discretionary nature of the
category, demand is holding up better than feared, Jefferies
says
    ** Brokerage cautions that prices will decline in 2023,
driven by a slowdown in residential construction
    ** AMWD is down ~19% YTD through Thurs close, while FBHS is
down 43%

 (Reporting by Ankur Banerjee)