Armstrong World upgraded to Neutral from Sell at UBS

UBS upgraded Armstrong World to Neutral from Sell with a price target of $103, up from $75. The analyst remains constructive on homebuilder stocks in 2024, saying the tailwinds underpinning the group remain intact, including resilient demand, limited existing home inventory and financing advantages relative to most private peers. Furthermore, valuation upside and ultimately an industry re-rate could occur as new construction volume remains favorable and the builders continue to gain outsized share, the analyst tells investors in a research note. UBS expect Armstrong’s growth initiatives and innovation to drive continued improvement in price/mix and above market growth.