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Baird has maintained an Outperform rating on Carlisle Companies Incorporated (NYSE: NYSE:CSL (OTC:CSLLY)) and raised the stock's price target to $506 from $500.
The adjustment follows the firm's analysis of third-quarter performance and expectations for the coming year in the roofing industry.
The firm's research indicated that surveyed volumes for non-residential roofing in the third quarter experienced a low single-digit increase, surpassing initial expectations.
Despite this, the pricing for the quarter remained flat and stable sequentially, although the pace of traction was somewhat slower than anticipated.
Looking ahead, the initial outlook for 2025 suggests an increase in volumes in the mid-single digits and low single-digit pricing growth. However, these projections are still preliminary. The re-roofing segment is expected to perform better than new construction, which could influence the company's performance moving forward.
In other recent news, the Australia-based biopharmaceutical company CSL has been awarded a $121.4 million contract by the U.S. Department of Health and Human Services to expand the United States' stockpile of bird flu vaccines. This marks the fifth such award CSL has received in response to bird flu outbreaks, previously delivering approximately 4.8 million doses of its vaccine.
In parallel, Carlisle Companies Incorporated has been maintaining a strong financial performance, with Q2 2024 results showing an 11% sales growth, reaching $1.5 billion, and an adjusted earnings per share increase of 33% to $6.24. This led to the company raising its full-year 2024 outlook, expecting around 12% revenue growth.
On the analyst front, Baird has upheld its Outperform rating for Carlisle, while Oppenheimer has raised its price target from $475 to $480, reinforcing confidence in potential earnings and cash flow growth for 2024-25.
InvestingPro Insights
Carlisle Companies Incorporated (NYSE:CSL) has demonstrated strong financial performance and market positioning, aligning with Baird's optimistic outlook. According to InvestingPro data, CSL's revenue growth of 10.99% in the most recent quarter supports the firm's observation of increased roofing volumes. The company's robust profitability is evident in its 37.56% gross profit margin and 23.22% operating income margin for the last twelve months.
InvestingPro Tips highlight CSL's financial strength and shareholder-friendly policies. The company has maintained dividend payments for 54 consecutive years and has raised its dividend for 31 consecutive years, showcasing its commitment to returning value to shareholders. This aligns with Baird's positive long-term perspective on the stock.
Moreover, CSL's management has been aggressively buying back shares, which could potentially boost earnings per share growth, a factor Baird mentioned as contributing to their positive outlook. The stock's strong performance is reflected in its 89.61% price total return over the past year and its current trading near its 52-week high.
For investors seeking a deeper analysis, InvestingPro offers 18 additional tips for CSL, providing a comprehensive view of the company's financial health and market position.
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