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Goldman adjusts target for Carlisle Companies shares, cites growth potential in re-roofing cycle

EditorEmilio Ghigini
Published 04/03/2024, 04:28 AM
© Reuters.

Wednesday - Goldman Sachs has initiated coverage on shares of Carlisle Companies Incorporated (NYSE:CSL (OTC:CSLLY)) with a Buy rating, setting a price target of $455. The investment firm anticipates Carlisle will benefit from various positive trends, including an upswing in the non-residential re-roofing cycle. They also note the company's efforts to enhance price/mix and maintain ongoing productivity and efficiency improvements.

According to Goldman Sachs, these factors are expected to lead to above-average adjusted earnings per share (EPS) growth. The firm also highlights Carlisle's proactive management team, which is open to deploying capital for accretive mergers and acquisitions (M&A) and increasing shareholder returns in the coming years.

Goldman points out that Carlisle's current market valuation presents an attractive opportunity for investors to enter the stock. The company's strategic investments and the potential for a non-residential re-roofing cycle are among the key drivers behind the optimistic outlook.

The analyst at Goldman believes that Carlisle's position in the market, coupled with its company-specific dynamics, positions it favorably for future growth. These insights are based on the firm's analysis of the industry and macroeconomic factors.

The price target of $455 set by Goldman Sachs reflects confidence in Carlisle's growth trajectory and its ability to capitalize on the identified market opportunities.

InvestingPro Insights

As Goldman Sachs initiates coverage on Carlisle Companies Incorporated with a bullish stance, real-time data from InvestingPro corroborates some of the optimism surrounding the company. With a robust market capitalization of $18.64 billion and a forward-looking P/E ratio of 25.41, Carlisle appears to be valued for growth by the market. The company's commitment to shareholder returns is evident, as it has raised its dividend for 31 consecutive years, a testament to its financial health and management's confidence in its business model.

InvestingPro data shows a significant revenue of $4.59 billion over the last twelve months as of Q4 2023, although it reflects a revenue decline of 15.83% year-over-year. Despite this, the company's gross profit margin remains strong at 35.63%, indicating efficient cost management. Additionally, Carlisle's share price is trading near its 52-week high, capturing a 98.8% price percentage of that peak, which aligns with the high return of 75.36% over the last year. These metrics suggest that investors have been rewarding the company's performance and strategic initiatives.

For readers seeking to delve deeper into Carlisle's financial health and potential investment opportunities, there are additional InvestingPro Tips available, including insights on the company's debt levels, asset liquidity, and earnings revisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover 18 more InvestingPro Tips that could further inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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