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Masonite International (NYSE:DOOR) late Thursday was rated Outperform in new research coverage by analysts at financial-services firm Oppenheimer. They said the door maker is poised for gains as more single-family homes get built.
“The company focus on innovation and de-commoditizing its product offerings should contribute to pricing power,” Tyler Batory, analyst at Oppenheimer, said in a January 18 report.
Masonite’s (DOOR) earnings margin is greater than it was before the pandemic, and it has opportunities “for further expansion in the years ahead.”
Oppenheimer set a price target of $115 a share on Masonite (DOOR), based on an estimated next-12-month multiple of 7.5 times earnings before interest, taxes, depreciation and amortization, and 14.5 times earnings per share.
The multiples are higher than historical values, and similar to comparable companies.
“We think an elevated multiple compared with history is valid given the company's strategy and growth outlook,” according to Oppenheimer.
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