Armstrong Industrial

Armstrong Industrial: CIMB maintains U/p with $0.29 TP. House believe Armstrong’s post-FY12 results share price outperformance has priced in all the positives from its automotive segment and cost saving measures. In addition, channel checks reveal an unexciting outlook for the HDD industry in 1H13. Estimates are unchanged as house have already factored in strong sales growth from the automotive segment and recovery in data storage in 2H13. TP stays at $0.29, pegged at 8x CY14 P/E, its 5-year average. Following the strong share price gains recently, house downgrade rating to an Underperform from a Neutral. De-rating catalysts could come from potential earnings disappointments.