Griffon surges on starting review of strategic options

Griffon

16/05/2022 19:12

** Shares of home and building products maker  GFF.N  soar
23.4% to $30 in afternoon trade - biggest pct gainer on the NYSE
composite index  .NYA 
    ** GFF says it has started process to review a range of
strategic alternatives including a sale or merger  urn:newsml:reuters.com:*:nBw6Qypxta
    ** Griffon has beaten earnings estimates for five out of the
past six quarters; stock trades at a forward average 12-month
price to earnings (P/E) multiple of 6.4x vs 7.8x for the
homebuilding and construction supplies sector, according to
Refinitiv IBES data
    ** GFF in April raised FY2022 adjusted EBITDA forecast for
its business segments by 34% to $475 mln
    ** Notwithstanding the increased guidance, there is a
profound disconnect between Griffon's share price and the
underlying value of its businesses - GFF
    ** GFF in April also announced deal to sell its defense
electronics unit to TTM Technologies  TTMI.O  for $330 mln in
cash  urn:newsml:reuters.com:*:nL3N2WG2SS
    ** Stock up 5.3% YTD, including session gains

 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com;))