Stifel Reiterates Buy Rating, Raises PT On Headwaters Based On 2016 EBITDA Estimate

In a report published Thursday, Stifel analyst John Baugh reiterated a Buy rating on Headwaters Inc. (NYSE: HW), and raised the price target from $18.00 to $20.00.

In the report, Stifel noted, "We are raising our target price from $18 to $20, which is based on 10.5x our calendar 2016 EBITDA estimate. We note that we base that multiple on roughly a 10% premium to the group. We continue to believe the company should have a strong year based on improvement in both business segments. We continue to have conviction that pricing in the cement industry will be strong in 2015, which should carry over to the fly ash business. Repair/remodel demand should help drive some volume and mix improvements in the building products business."

Headwaters closed on Wednesday at $17.68.