Worthington initiated with a Hold at Canaccord

Canaccord analyst Brian McNamara initiated coverage of Worthington Enterprises with a Hold rating and $56 price target. While optimistic on the company’s growth prospects as a more focused standalone entity, the analyst believes Worthington’s long-term sales target of 6% to 8% is a “bit aggressive” and too reliant on acquisitions. The firm believes its target multiple is fair given the limited financial disclosures so far in Worthington’s early days as a standalone company. It could become more constructive on the stock as disclosures increase and/or Worthington builds its track record as a standalone company.