JELD-WEN (JELD) PT Lowered to $10 at Loop Capital

Loop Capital analyst Jeffrey Stevenson lowered the price target on JELD-WEN (NYSE: JELD) to $10.00 (from $12.00) while maintaining a Hold rating.

The analyst commented: "We are adjusting our model post Towanda divestiture and lowering our PT to $10 (-$2) on reduced estimates. JELD announced that the sale of its Towanda, PA manufacturing facility and related assets to Woodgrain Inc. for $115M officially closed on January 17, 2025. The closing represents the end of a multi-year legal proceeding where the federal court ruled that JELD had to divest its Towanda, PA door and doorskin operations following an antitrust lawsuit brought by competitor Steves & Sons in 2016. We discussed in our December report that we believe JELD decided to move forward with the asset sale to provide a clean slate heading into CY25 and focus on its ongoing strategic transformation since the company is expecting another challenging year in both its North American and European businesses. JELD estimates that the divestiture of its Towanda, PA operations will result in a reduction of $150M to $200M in annual revenues and $25M to $50M in annual EBITDA during the twelve months following the closing of the divestiture. As a result, we are maintaining our Hold rating and our new $10 PT is based on 7x our reduced FY25E adjusted EBITDA of $258M."

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