AWI - Armstrong World Leveraged To Non-Residential Recovery And Pricing But Self-Help Could Go Even Further

• Volumes have slowed at Armstrong, and I see a gap caused by tapering commercial renovation and future new construction, but pricing has been strong, and healthcare/education could surprise with renovation.
• Management is looking for double-digit revenue growth over the next five years, but I believe greater acceptance of Healthy Spaces products and improved value-added sales will be critical.
• Even with lower growth expectations than management's targets, Armstrong shares look undervalued today, with upside tied to increased healthcare/institutional spending on indoor air quality.

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