Zacks Investment Research downgraded shares of Armstrong World Industries, Inc. (AWI) from NEUTRAL to UNDERPERFORM on August 22, 2014, with a target price of $51.00.
We are downgrading our recommendation on Armstrong World from Neutral to Underperform with a target price of $51. In the second quarter, the company's adjusted earnings fell 1% year over year to $0.60 per share impacted by lower volumes and rising lumber costs, partly offset by favorable price and mix. For the third quarter of 2014, the company expects sales to stand between $740?$780 million. Armstrong World trimmed its full-year 2014 guidance based on expectations that both residential and commercial discretionary repair and remodel spend will remain flat to down for the full year. Overall commercial volumes are also expected to be down. Raw material inflation and the underperforming resilient business in Europe also pose concerns for the company.
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