Masco Corp. sales ‘likely to continue being pressured’ – Gimme Credit

Corporate bond research firm Gimme Credit upgraded Masco Corp . (NYSE:) to Improving from Stable in a note Wednesday, raising its credit score for the company to 1 from 0.

Analysts at Gimme Credit said Masco sales are likely to continue being pressured as the repair and remodel market is expected to be flattish in 2024.

“The adjusted operating margin outlook, however, remains favorable on cost savings initiatives, pricing actions, and lower raw material costs,” they added.

Analysts also noted that the company reiterated its intent on using $500 million of annual free cash flow for share repurchases and/or bolt-on acquisitions.

“Based on our revised projections, we look for 2023 net leverage to decrease 20 basis points to 1.6x and an additional 40 basis points to 1.2x in 2024,” the analysts at Gimme Credit concluded.