2023-03-21 09:21:39 ET
Armstrong World Industries ( NYSE: AWI ) on Tuesday was downgraded to Hold from an investment rating of Buy by analysts at Deutsche Bank. They said the maker of construction materials faces less demand for non-residential construction amid worries about the financial health of regional banks.
“The prospect of tightening financial conditions particularly at local and regional institutions has intensified our firm's call for a recession in recent days, and we see this impacting both the availability of capital for non-residential construction, and the appetite for developers to start new projects,” Joe Ahlersmeyer, analyst at Deustche Bank, said in a March 21 report.
The failures this month of Silicon Valley Bank and Signature Bank ( SBNY ) and the efforts by bigger banks to rescue First Republic Bank ( FRC ) have led to fears about the financial strength of other similarly sized lenders.
Armstrong World ( AWI ) in the past 12 months has declined 27%, compared with a 10% slide for the Standard & Poor’s 400 midcap stock index ( SP400 ).
Seeking Alpha columnist Carles Diaz Caron has a Buy rating on Armstrong World ( AWI ) because of its earnings and dividend payments. Contributor Malak Investment Ideas also rates Armstrong World ( AWI ) as a Buy on its prospects for global expansion.
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Armstrong World Industries downgraded to Hold at Deutsche Bank