Update shared on13 Sep 2025
Fair value Increased 2.03%Armstrong World Industries’ price target has been raised to $195.67, reflecting analyst confidence in strong earnings growth, higher average unit values in the multi-family segment, ongoing margin improvements, and reaffirmed management guidance.
Analyst Commentary
- Continued strong earnings growth driven by established company strategy.
- Increasing Average Unit Value in multi-family segment supporting revenue expansion.
- Sustained organic growth complemented by successful acquisitions.
- Ongoing margin gains anticipated due to operational efficiencies.
- Management's guidance reinforces confidence in growth trajectory.
What's in the News
- Raised 2025 earnings guidance: net sales expected at $1,600–$1,630 million, operating income at $425–$436 million, net earnings at $300–$304 million ($6.93–$6.99 per share).
- Completed repurchase of 15 million shares (30.34% of shares) for $1.09 billion; 0.48% of shares repurchased for $29.72 million during Q2 2025.
- Actively seeking bolt-on acquisitions to expand portfolio, supported by strong cash flow growth.
- Added to Russell 1000 Defensive Index, Russell 1000 Growth-Defensive Index, and Russell 1000 Value-Defensive Index.
Valuation Changes
Summary of Valuation Changes for Armstrong World Industries
- The Consensus Analyst Price Target has risen slightly from $191.78 to $195.67.
- The Future P/E for Armstrong World Industries has risen slightly from 26.20x to 26.74x.
- The Discount Rate for Armstrong World Industries remained effectively unchanged, at 8.20%.
Disclaimer
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