UPDATE: JP Morgan Initiates Ply Gem at Overweight, Cites Favorable Exposure to U.S Housing Recovery

In a report published on Tuesday, JP Morgan analyst Michael Rehaut initiated coverage on Ply Gem Holdings (NYSE: PGEM) with an Overweight rating and a $26 price target.

In the report, JP Morgan noted, "Overall, we view PGEM – which maintains a number one 36% share in vinyl siding and a number two 20% share in vinyl and aluminum windows for U.S. new residential construction – as well positioned to demonstrate significant leverage to the U.S. housing recovery, given its 39% exposure of 2012 pro forma sales to U.S. new residential construction, above our universe's 13% average."

Ply Gem Holdings closed on Monday at $20.14.