Loop Capital sees cabinets sales decelerate, keeps makers at Hold

Loop Capital analyst Garik Shmois is keeping a Hold rating on American Woodmark (AMWD) and MasterBrand (MBC), with price targets on the names also unchanged at $56 and $9 respectively. The analyst states that his cabinets survey for Q4 has shown a decelerating sales environment as dealers report lower traffic levels, even though the sales mix is "improving". While both stocks have benefited from rotation into housing names over the past few weeks, he sees limited catalysts for the companies given the later cycle nature of cabinets demand and the relatively limited visibility into 2023-24 sales, Shmois tells investors in a research note.