Stock Name: Armstrong
Company Name: ARMSTRONG INDUSTRIAL CORP LTD
CIMB in a July 8 research report says: "Our recent meetings with Armstrong suggest that business had bottomed out in early 2Q11, with sales for most segments picking up. However, margins are still being affected by US$ weakness and high raw-material prices.
"We have lowered our FY2011-2013 profit forecasts by 6-13% as we lower GP margin assumptions. Accordingly, our target price drops from 39 cents to 36 cents, still based on 8x CY12 P/E, its 5-year average. The stock has underperformed the market since our downgrade to underperform in mid-May.
"As valuations now look more reasonable, we upgrade it to neutral, seeing support from its healthy dividend yields and share buyback programme. UPGRADE TO NEUTRAL."
Company Name: ARMSTRONG INDUSTRIAL CORP LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 0.36 |
CIMB in a July 8 research report says: "Our recent meetings with Armstrong suggest that business had bottomed out in early 2Q11, with sales for most segments picking up. However, margins are still being affected by US$ weakness and high raw-material prices.
"We have lowered our FY2011-2013 profit forecasts by 6-13% as we lower GP margin assumptions. Accordingly, our target price drops from 39 cents to 36 cents, still based on 8x CY12 P/E, its 5-year average. The stock has underperformed the market since our downgrade to underperform in mid-May.
"As valuations now look more reasonable, we upgrade it to neutral, seeing support from its healthy dividend yields and share buyback programme. UPGRADE TO NEUTRAL."
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