Deutsche downgrades Armstrong World on non-residential exposure

Deutsche Bank analyst Joe Ahlersmeyer downgraded Armstrong World Industries to Hold from Buy with a price target of $77, down from $91. The prospect of tightening financial conditions, particularly at local and regional institutions, has intensified Deutsche’s call for a recession in recent days, the analyst tells investors in a research note. The firm sees see this impacting both the availability of capital for non-residential construction, and the appetite for developers to start new projects. It downgraded Armstrong on its non-residential exposure, saying tightening financial conditions will impact each of its verticals.