Truist analyst Keith Hughes has adjusted the price target for Masco (MAS, Financial), bringing it down from $92 to $75, while maintaining a Buy rating for the shares. This revision follows Masco's latest earnings report, which fell short of Wall Street expectations, and its decision to withdraw the 2025 guidance, primarily due to uncertainties surrounding tariffs.
The tariffs imposed on Chinese imports represent a significant exposure for Masco, according to Hughes. After considering pricing adjustments that are expected to rise by mid-single digits, along with other strategic actions, the impact on Masco's earnings per share (EPS) could be diminished by $0.50 to $0.70 in 2025, excluding potential drops in demand.
The analyst noted that a reduction in Chinese tariffs could substantially lessen this adverse effect. However, Hughes cautioned that until the tariff situation stabilizes and its implications on consumer demand are clarified, 2025 is likely to be a year characterized by volatility for Masco.
