Masco initiated with "neutral" - update

05/22/07 - Banc of America

NEW YORK, May 22 (newratings.com) - Analysts at Banc of America Securities initiate coverage of Masco Corp (MAS) with a "neutral" rating. The target price is set to $29.

In a research note published this morning, the analysts mention that the company is expected to post a decline in sales volume, and witness price competition going forward. Significant challenges that Masco is facing include the deteriorating construction environment and a decline in spending related to housing, the analysts say. The company’s sales are expected to decline by 5% in 2007, Banc of America Securities adds.