Masco "neutral," target price reduced

09/20/07 - Robert W. Baird

NEW YORK, September 20 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on Masco Corporation (MAS), while reducing their estimates for the company. The target price has been reduced from $28 to $25.

In a research note published yesterday, the analysts mention that the company’s housing starts in 2007 and 2008 are estimated at 1.35 million units and 1.28 million units, respectively, short of the consensus. Masco’s remodeling expenditures over the forecast period are likely to decline in low-to-mid single digits, the analysts say. The EPS estimates for 2007 and 2008 have been reduced from $1.80 o $1.75 and from $2.00 to $1.85, respectively, to reflect a weaker housing outlook.