Caesars Entertainment misses Q2 earnings expectations, shares edge lower
On Friday, Raymond (NSE:RYMD) James increased its price target on Griffon Corporation (NYSE:GFF) shares to $100 from the previous target of $95, while reaffirming a Strong Buy rating on the company’s stock. The adjustment reflects a positive outlook on the company’s Home & Building Products (HBP) segment, which has been outperforming expectations.
The analyst at Raymond James highlighted that despite the challenges faced by the Consumer and Professional Products (CPP) segment, which is currently grappling with soft demand and the impact of tariffs, the HBP segment’s robust performance warranted an upward revision in the price target. According to InvestingPro, Griffon maintains a "GREAT" financial health score of 3.02, supporting the HBP segment’s success in influencing the firm’s sum-of-the-parts valuation.
In the commentary provided, the analyst also maintained the perspective that Griffon Corporation could potentially be sold in the future. While this possibility remains on the horizon, InvestingPro data reveals management has been aggressively buying back shares, signaling strong confidence in the company’s value and prospects. This is one of several bullish indicators identified by InvestingPro’s comprehensive analysis.
Griffon Corporation’s stock price adjustment comes amidst a mixed performance within its diverse business segments. The CPP segment’s challenges are contrasted by the HBP segment’s strong results, which have exceeded both internal and external expectations set by the company and market analysts.
The outlook for Griffon Corporation remains positive, as indicated by the Strong Buy rating, with Raymond James expressing a continued belief in the company’s strategic direction and the potential for an outright sale. The firm’s analysis suggests that the increasing importance of the HBP segment is a key factor in driving the company’s valuation and future performance. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US stocks.
In other recent news, Griffon Corporation reported its second-quarter 2025 financial results, revealing a mixed performance. The company exceeded earnings per share (EPS) expectations with an actual EPS of $1.23, surpassing the forecast of $1.11. However, revenue fell short of projections, coming in at $612 million against a forecasted $620.4 million. Despite the revenue miss, Griffon is maintaining its full-year guidance, projecting revenue of $2.6 billion and segment adjusted EBITDA between $575 million and $600 million.
Additionally, Griffon Corporation is actively working to diversify its supply chain to mitigate the impacts of Chinese tariffs, with plans to establish alternative supply chains by the end of the year. The company continues to innovate with new product launches, such as the Clopay VertiStack Avanti garage door, while maintaining a strong position in the garage door market. Furthermore, Griffon has emphasized its transition to an asset-light business model, particularly in its Consumer and Professional Products segment, to enhance operational efficiencies and reduce costs. These developments reflect Griffon’s strategic efforts to navigate current market challenges and sustain its growth trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.