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Investing.com - RBC Capital raised its price target on Masco (NYSE:MAS) to $71.00 from $62.00 on Thursday, while maintaining a Sector Perform rating on the home improvement products manufacturer. According to InvestingPro data, Masco’s current market valuation appears fairly priced, with the stock trading at a P/E ratio of 18.6x and showing a solid financial health score.
The price target increase follows Masco’s second-quarter earnings beat and higher full-year 2025 guidance, which assumes solid performance in the company’s plumbing segment and less severe tariff impacts compared to earlier expectations. The company has demonstrated strong financial management, maintaining dividend payments for 55 consecutive years and achieving a healthy EBITDA of $1.49 billion in the last twelve months.
RBC Capital increased its fiscal year 2025 and 2026 earnings per share estimates by 12% and 10% respectively, noting that strong plumbing pricing and professional paint sales are partially offsetting weaker plumbing volumes and do-it-yourself paint demand.
The rollback and pause in certain tariffs are aiding Masco’s margins, allowing the company to more effectively manage costs, though RBC highlighted that increased tariffs after August 1st, particularly on copper, present risks to fiscal year 2026 performance.
Despite the positive adjustments to earnings estimates, RBC views Masco’s overall risk/reward profile as balanced at current valuation levels, supporting its unchanged Sector Perform rating.
In other recent news, Masco Corporation reported strong financial results for the second quarter of 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $1.30, which was higher than the anticipated $1.08. Masco’s revenue also exceeded forecasts, reaching $2.05 billion compared to the expected $2 billion. These results represent a 20.37% earnings surprise, demonstrating robust performance. Analysts from various firms have taken note of these developments, with some considering potential upgrades to the company’s stock rating. Investors have shown positive reactions to the earnings report, indicating confidence in Masco’s financial health. These recent developments highlight the company’s strong position in the market.
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