Zacks Investment Research downgraded shares of NCI Building Systems Inc. (NCS) from NEUTRAL to UNDERPERFORM on May 17, 2013, with a target price of $15.00.
NCI Building reported loss per share of $0.19 in the first quarter of 2013. Sales increased 22% to $297.6 million. This was due to severe weather conditions, product mix, additional costs for the ramp-up of the Middletown coatings plant, and additional training required for employees. NCI Building expects to incur a loss in the second quarter as well despite a projected 17% year over year increase in revenues. Furthermore, volatility of steel prices, dependence on few steel suppliers, and uncertainty regarding sequestration remain concerns. We have thus downgraded our recommendation from Underperform to Neutral on NCI Building Systems Inc. with a target price of $15.
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