Analyst Timothy Wojs of Robert W. Baird maintained a Buy rating on Masco (MAS – Research Report), boosting the price target to $85.00.
Timothy Wojs has given his Buy rating due to a combination of factors surrounding Masco Corporation’s recent performance and future prospects. In particular, the company’s strength in plumbing margins is a key driver, as evidenced by solid quarterly results that aligned with sales expectations. Despite market uncertainty, Masco’s guidance for the full year remains steady, which Wojs views as a cautious but sound approach given the current economic climate. Moreover, the resilience of Masco’s earnings profile, coupled with a robust portfolio and an attractive total-return algorithm, supports the positive outlook. The company’s ability to sustain its margin expansion over the medium term further bolsters the case for a Buy rating.
Additionally, Masco’s decorative sales performed in line with expectations, showcasing stability in the paint sector with modest volume growth balanced by pricing. The company’s strategic position is also highlighted by its prudent approach to mergers and acquisitions, focusing on smaller, bolt-on acquisitions while remaining open to larger opportunities where due diligence is warranted. Overall, Wojs’s confidence in Masco’s unchanged guidance for 2024, which brackets current market estimates, along with the anticipated sales growth and margin improvements in the second half of the year, underpin the recommendation to buy Masco’s stock.
Wojs covers the Industrials sector, focusing on stocks such as Carlisle Companies, Allegion, and Carrier Global. According to TipRanks, Wojs has an average return of 8.1% and a 56.31% success rate on recommended stocks.
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Masco (MAS) Company Description:
Masco Corp. engages in the design, manufacture, marketing and distribution of branded home improvement and building products. It operates through the following business segments: Plumbing Products and Decorative Architectural Products. The Plumbing Products segment includes faucets; plumbing fittings and valves; showerheads and hand showers; bathtubs and shower enclosures; toilets; spas, and exercise pools. The Decorative Architectural Products segment offers paints and coating products; and cabinet, door, window, and other hardware. The company was founded by Alex Manoogian in 1929 and is headquartered in Livonia, MI.
