UPDATE: D.A. Davidson Initiates NCI Building Systems at Neutral on Good Market Position

In a report published Tuesday, D.A. Davidson analyst Brent Thielman initiated coverage on NCI Building Systems (NYSE: NCS) with a Neutral rating and $16.00 price target.

In the report, D.A. Davidson noted, “NCI Building Systems (NCI) serves the North American non-residential building construction industry with metal components, integrated engineered building systems, and other services. The company produces manufactured building solutions primarily for low-rise non-residential construction. The company also develops components and provides metal coating services for internal operations and outside customers. NCI is the #1 or #2 player in each of its core businesses. Domestic non-residential construction has experienced an extended downturn, particularly when compared to prior cycles. We believe declining government-sponsored projects could remain a challenge through the remainder of the year, despite our optimism for a recovery in private spending. As momentum develops, we look for a multi-year recovery. NCI appears well positioned to leverage a building cycle recovery in the coming years, while exposure to growing areas such as manufacturing also appears compelling.”

NCI Building Systems closed on Monday at $15.43.