Universal Forest Products (NASDAQ: UFPI) was upgraded by Zacks Investment Research from an “underperform” rating to a “neutral” rating in a research report issued to clients and investors on Wednesday. They currently have a $34.00 price target on the stock.
Zacks’ analyst wrote, “In spite of being forced to grapple with the prevailing weakness in the residential construction and retail building materials markets, we believe Universal Forest’s efforts to align its cost with business activities are worthy of appreciation. The stringent economic measures undertaken are likely to save roughly $10 million annually for the company. Moreover, to combat the weak operating environment, the company’s focus on new products, business diversification and new customer additions are encouraging. Thus, we have upgraded our rating on Universal Forest from Underperform to a Neutral recommendation. The company in the third quarter 2011 reported a 123% year-over-year increase in earnings per share that overshadowed the 2.4% decline in revenue. Management, however, reiterated its soft customer demand outlook for the fiscal year 2011. “
Separately, analysts at DA Davidson downgraded shares of Universal Forest Products from a “neutral” rating to an “underperform” rating in a research note to investors on Friday, January 6th.
Universal Forest Products, Inc. is a holding company. The Company’s subsidiaries design, manufacture and market wood and wood-alternative products for do-it-yourself (DIY)/retail home centers and other retailers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market, and specialty wood packaging and components for various industries. The Company’s consumer products subsidiary offers a portfolio of outdoor living products, including wood composite decking, decorative balusters, post caps and plastic lattice, and its garden group offers a range of products, such as trellises and arches, to retailers worldwide. Its subsidiaries also provide framing services for the site-built market and forming products for concrete construction. The Company engineers, manufactures, treats, distributes and installs lumber, composite wood, plastic and other building products for markets, including the DIY/retail.
Universal Forest Products traded up 3.38% on Wednesday, hitting $33.92. Universal Forest Products has a 1-year low of $22.91 and a 1-year high of $39.82. The stock has a 50-day moving average of $29.96 and a 200-day moving average of $27.5. The company has a market cap of $663.3 million and a price-to-earnings ratio of 102.53.