MasterBrand price target lowered to $19 from $21 at Loop Capital

Loop Capital lowered the firm’s price target on MasterBrand (MBC) to $19 from $21 and keeps a Buy rating on the shares. The company reported a much softer-than-expected quarter and FY25 guidance as cabinet industry demand shut down after Thanksgiving and into January, the analyst tells investors in a research note. Weaker demand led to weak fixed cost absorption, new cost reduction actions, price increase delays, negative price-mix, and negative margins, the firm adds. Loop notes however that when the cycle improves, earnings growth should ramp due to pricing, favorable cost initiatives, and strong operating leverage.