Armstrong World Industries price target raised to $152 by Jefferies

Investing.com - Jefferies raised its price target on Armstrong World Industries (NYSE:AWI) to $152.00 from $137.00 on Friday, while maintaining a Hold rating on the ceiling manufacturer’s stock. The company’s shares, which have surged nearly 39% over the past year, are currently trading near their 52-week high of $170.85. According to InvestingPro analysis, AWI appears to be trading above its Fair Value.

The research firm’s analysis indicates that ceiling demand and bidding activity for Armstrong World Industries have remained steady, with pricing described as strong. Jefferies noted that Armstrong World Industries plans a second price increase in August. This pricing power has contributed to the company’s robust 14.55% revenue growth and impressive financial health score of "GREAT" on InvestingPro.

Based on these market conditions, Jefferies expects Armstrong World Industries to deliver results for the second quarter that will be in-line with expectations or potentially show a modest beat.

The firm anticipates Armstrong World Industries will reiterate its full-year guidance when it reports quarterly results.

In the same research note, Jefferies also commented on composite decking company Trex, noting that its sell-out moderated in the second quarter, with wet weather in May serving as a headwind.

In other recent news, Armstrong World Industries reported strong financial results for the first quarter of 2025, surpassing analyst expectations. The company posted an earnings per share (EPS) of $1.66, exceeding the forecasted $1.53, and achieved revenue of $382.7 million, beating the expected $370.7 million. This performance included a 17% increase in total net sales and a 59% growth in the Architectural Specialties segment. Despite these positive outcomes, Loop Capital Markets adjusted its price target for Armstrong World Industries, lowering it from $163 to $158, while maintaining a Hold rating. This cautious stance reflects concerns about potential challenges in the new construction sector and discretionary demand that could impact earnings in 2026. The company reaffirmed its full-year guidance for 2025, anticipating a slight increase in Architectural Specialties sales and a mid-single-digit input cost inflation. Armstrong World Industries also highlighted its focus on innovation and market adaptability to navigate potential challenges.

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