BofA downgrades some building products makers, forecasts weak demand

Hayward Holdings

18/10/2022 15:30

** BofA downgrades building products makers Masco Corp
 MAS.N , Mohawk Industries  MHK.N  and Hayward Holdings
 HAYW.N , citing weak demand for renovation projects and decline
in international orders
    ** Brokerage downgrades all the three stocks to
"underperform" from "neutral"
    ** BofA forecasts flat earnings for MAS due to sales decline
in paint products and revenue headwinds from Europe, which
accounts for 14% of its sales; cuts PT to $46 from $58
    ** Slashes PT for MHK to $100 from $140 on weaker demand
from Europe, which forms 32% of its sales; says there is margin
pressure from spike in natural gas price and increased import
competition due to lower shipping rates
    ** BofA says HAYW could see decline in revenue due to shift
in spending to other categories despite pool equipment sales
being above pre-COVID levels; cuts PT to $8 from $14
    ** Brokerage, however, double upgrades Owens Corning  OC.N 
to "buy" from "underperform" due to rise in roofing demand,
partially driven by Hurricane Ian; raises PT to $95 from $82
    ** All the four stocks up between 1.3% and 5.0% due to
broader market recovery  .N 
 (Reporting by Shristi  Achar A)
 ((Shristi.AcharA@thomsonreuters.com;))