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Research Alert: CFRA Keeps Buy Opinion On Shares Of Armstrong World Industries Inc.
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Research Alert: CFRA Keeps Buy Opinion On Shares Of Armstrong World Industries Inc.
Sep 25, 2025 6:31 AM

09:10 AM EDT, 09/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target by $23 to $230, using an average of a forward P/E of 24x our 2026 EPS estimate of $8.07 (unchanged), which yields $194, and our DCF model, assuming a terminal growth rate of 2.5%, WACC of 7.5%, and 10-year FCFF CAGR of 15.1% (yielding $267). We keep our 2025 EPS view at $7.32. With support from our DCF, we have raised our target price and reiterate our view that AWI will see strong sales/margin expansion in 2025/2026 due to a solid pipeline of projects, acquisitions, and growth within nonresidential construction markets, particularly office and education. We see favorable AUV, volume growth, improved custom margins in its AS segment, and manufacturing productivity driving margin expansion. Lastly, we like AWI's strong balance sheet, which allows for financial flexibility. As of LTM June 30, 2025, AWI's net debt/EBITDA was 1.1x, and its current assets covered 1.6x its current liabilities. Additionally, AWI had $528M in liquidity, including $447M in undrawn revolving credit and $81M in cash.

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