Universal Forest Products Rating Increased to Buy at DA Davidson (UFPI)
Universal Forest Products (NASDAQ:UFPI) was upgraded by investment analysts at DA Davidson from a “neutral” rating to a “buy” rating in a note issued to investors on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $46.00 price target on the stock. DA Davidson’s price objective indicates a potential upside of 24.29% from the stock’s previous close.
The analysts wrote, “Concerns about housing recovery [are] overblown. We attribute the recent weakness in UPFI shares to concerns that the housing recovery is not as robust as anticipated and/or that rising interest rates will crimp the rebound. We believe those fears are overblown, particularly in the case of UFPI, whose exposure to residential construction is less than 20% of total revenues. With UPFI shares now 24% below our $46 target, we believe the valuation is attractive and we are raising our rating from Neutral to BUY.”
Shares of Universal Forest Products (NASDAQ:UFPI) traded up 3.27% on Thursday, hitting $38.22. The stock had a trading volume of 19,577 shares. Universal Forest Products has a 1-year low of $32.56 and a 1-year high of $45.60. The stock’s 50-day moving average is $39.62 and its 200-day moving average is $39.54. The company has a market cap of $760.3 million and a P/E ratio of 31.80.
Universal Forest Products (NASDAQ:UFPI) last released its earnings data on Wednesday, July 17th. The company reported $0.79 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.67 by $0.12. The company had revenue of $738.40 million for the quarter, compared to the consensus estimate of $714.80 million. During the same quarter last year, the company posted $0.88 earnings per share. Universal Forest Products’s revenue was up 24.4% compared to the same quarter last year. On average, analysts predict that Universal Forest Products will post $1.70 earnings per share for the current fiscal year.
Separately, analysts at Zacks reiterated a “neutral” rating on shares of Universal Forest Products (NASDAQ:UFPI) in a research note to investors on Tuesday, July 23rd. They now have a $43.00 price target on the stock.
Universal Forest Products, Inc is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for retail building home centers and other retailers, structural lumber and other products for the manufactured housing industry, engineered wood components for the residential construction market, and specialty wood packaging and components and packing materials for various industries.
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