Materials
Expected a blowout quarter but 1Q22 came in even better than Northcoast’s most bullish expectations. Furthermore, in another positive surprise, CSL now expects to achieve its Vision 2025 this year. The biggest question going forward will be the sustainability of margins in CCM. Margins have been on a steady climb for the last several years and given the favourable dynamics and changes that have occurred in the industry, it is very possible margins continue to reset higher. Northcoast increase their 2022 EPS estimate to $17.45 (was $14.95) and 2023 EPS to $19.00 (was $16.15). TP increased to $320 (30% upside).
Edition: 135
- 13 May, 2022
Carlisle Companies (CSL)
Materials
Nothing but blue sky's ahead - Northcoast upgrade the stock to Buy following their latest roofing checks. Underlying demand is building and prospects for pricing are improving. CSL has now announced 2 price increases in the last 2 months which will result in the company being price/cost neutral in 2021 (prev. expected ~$30m headwind) with sizeable tailwinds next year. Northcoast also believe CSL should divest its other segments and become a pure-play in CCM (its building products platform).
Edition: 114
- 09 July, 2021