FBR Capital Reiterates a Buy Rating on PGT Inc

By Ryan Adsit

In a report issued on November 8, Alex Rygiel from FBR Capital reiterated a Buy rating on PGT Inc (NASDAQ: PGTI), with a price target of $13. The company’s shares closed yesterday at $10.25.

Rygiel observed:

“We are modestly adjusting our estimates for 2016 and 2017 following 3Q16 results and management commentary suggesting a short-term slowdown in the higher- end “luxury” markets for PGT’s products. We are slightly reducing our price target to $13 (from $14.50) and reiterating our Outperform rating. On November 3, PGT announced 3Q results that were mostly in line with expectations, including record quarterly sales, which grew 15% YOY on an organic basis, and the highest adjusted EBITDA since 2Q06. The Florida market, which accounts for approximately 90% of PGT’s revenue, remains strong on DD% single-family starts. The glass supply constraints, which were discussed in the last several quarters, have abated with additional internal supply, increased production efficiencies, and easing from an external supplier, such that management does not believe glass will be a constraint for at least the next several quarters.”

According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 6.3% and a 55.8% success rate. Rygiel covers the Industrial Goods sector, focusing on stocks such as Granite Construction Inc., Masonite International, and Orion Group Holdings.

PGT Inc has an analyst consensus of Moderate Buy, with a price target consensus of $13.

PGT Inc’s market cap is currently $502.2M and has a P/E ratio of 22.28. The company has a book value ratio of 3.9336.

Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is negative on the stock. Most recently, in December 2015, Todd Antonelli, the VP of PGTI sold 145,000 shares for a total of $1,644,300.

PGT, Inc. manufactures and sells windows and doors. The company’s impact-resistant products, which are marketed under the WinGuard, PremierVue and PGT Architectural Systems brand names, combine heavy-duty aluminum or vinyl frames with laminated glass to provide protection from hurricane-force winds and wind-borne debris. It also manufactures non-impact resistant products in both aluminum and vinyl frames, including its SpectraGuard line of products. PGT was founded on December 16, 2003 and is headquartered in North Venice, FL.