Home and building products maker Masco Corporation(
) on Wednesday caught a big downgrade from analysts at Goldman
Sachs, sending its shares lower in premarket trading.
The firm cut its rating on MAS from "Neutral" to "Sell" with a
$10 price target. That target represents an expected 15% downside
to the stock's Tuesday closing price of $11.82.
Goldman said it feels Masco's current 2011 consensus earnings
estimates are 33% too high - Goldman expects the company to earn 41
cents for the year, while the average Wall Street estimate sits at
62 cents. A Goldman analyst commented, "Masco's key businesses will
face margin pressure in 2011 via higher copper, zinc, insulation
and titanium dioxide prices."
Masco shares fell 22 cents, or -1.9%, in premarket trading
The Bottom Line
We removed shares of MAS from our "recommended" list last Sept.23,
when the stock was trading at $17.87. The company has a dividend
yield of 2.54%, based on last night's closing stock price of
$11.82. The stock has technical support in the $10 price area. If
the shares can firm up, we see overhead resistance around the $13
price level. We would remain on the sidelines for now.
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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