Monday After the Bell: Earnings from Annies Inc (BNNY) and More

In its brief history as a public company, Norwegian currently has analyst coverage from two Wall Street firms. Japanese firm Nomura Securities initiated coverage with a Neutral rating and $30 price target. In contrast to Nomura, Stifel Nicolaus is notably more bullish, initiating coverage with a Buy rating and $33 price target on January 28.

Investors will gain further clarity from the company itself as well as the Wall Street community following Monday’s fourth quarter earnings report. During the third quarter 2012, operating income increased 8.8% compared to the prior year, while operating margin improved to 25.8% from a previous 24.0%. Both are positive trends, giving credence to the company’s timing for their public IPO.

Masco Corporation (NYSE:MAS)
Monday, Feb. 11 after market close; EPS ($0.01) / Revenue $1.80B

Masco Corporation manufactures, distributes and installs home improvement and building products. The Company is a manufacturer of a number of home improvements and building products, including faucets, cabinets, architectural coatings and windows, and the installer of insulation for the new home construction market (description from company website).

Shares of Masco have risen 38% in the last year as investors gain further confidence in the strength of the American housing recovery. In addition to Home Depot, Masco is an alternative way to play a 2013 housing rebound in contrast to the actual homebuilders, all of which are stretched in valuation. Homebuilder Beazer Homes, which I wrote about back on November 15, has rallied a massive 26% between November 15 and February 8 alone.

On January 18, Credit Suisse raised Masco to Outperform from Neutral with a $22 price target from a previous $14 twelve-month target. A possible reason for the upgrade is that Masco significantly reduced its operating costs during the downturn, and is well-positioned for improvement in incremental operating margin going forward.

Among Masco’s numerous business lines, the company’s decorative and architectural products segment includes popular items such as Behr paint, a top-seller at Home Depot. Masco’s businesses are also benefitting from an increase in private residential fixed investment, which has grown consecutively for the last five quarters according to data from the St. Louis Federal Reserve.

Aside from Credit Suisse, equity research analysts at Bank of America Merrill Lynch recently initiated coverage of Masco with a $22 price target.

The article Monday After the Bell: Earnings from Annie’s, Norwegian Cruise Line, Masco originally appeared on Fool.com and is written by John Macris.

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