Truist Securities raises Armstrong World Industries stock price target on strong results

Published 30/07/2025, 17:06
Truist Securities raises Armstrong World Industries stock price target on strong results

Investing.com - Truist Securities raised its price target on Armstrong World Industries (NYSE:AWI) to $195.00 from $175.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro data, the company, currently valued at $8.2 billion, is trading above its Fair Value, with several metrics suggesting an overbought condition.

The price target increase follows Armstrong World Industries’ quarterly results that significantly exceeded market expectations, driven by strong organic sales in its Architectural Specialties segment and continued Average Unit Value gains in Mineral Fiber products.

Armstrong World Industries stock rose 8% in intraday trading on Wednesday, outperforming the broader market as the S&P 500 declined 0.2% during the same period.

The company has raised its 2025 sales and EBITDA guidance based on the strong quarterly performance, though management still anticipates soft Mineral Fiber volume for the remainder of the year. Armstrong reported gains across several end markets, despite overall renovation demand remaining soft.

Truist Securities noted that Armstrong World Industries is growing EBITDA while many peers are experiencing declines, with this growth rate expanding since the beginning of 2025, positioning the company to potentially deliver some of the strongest earnings among its peers. InvestingPro analysis shows the company maintains a GREAT financial health score, with strong revenue growth of 14.55% and EBITDA of $402.8M in the last twelve months. Get access to 15+ additional ProTips and comprehensive analysis with an InvestingPro subscription.

In other recent news, Armstrong World Industries reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share of $2.09, surpassing the expected $1.78 by 17.42%. Additionally, Armstrong’s revenue reached $425 million, exceeding the anticipated $404.05 million. This strong performance in a challenging market has garnered positive attention from investors. In light of these results, Loop Capital increased its price target for Armstrong World Industries to $190 from $158, while maintaining a Hold rating. The research firm attributed this adjustment to the company’s robust financial growth. These developments highlight the company’s ability to outperform expectations and gain analyst confidence.

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