NCS Dented by Steel Costs

Zacks senior construction industry analyst Mario Ricchio had this to say in his latest Hold-rated report on NCI Building Systems, Inc. (NCS):

'NCI Building Systems is one of the largest integrated manufacturers of metal products for the North American non-residential construction industry. The company's fourth quarter EPS of $1.30 was below our estimate of $1.60 and 7.8% y-o-y mainly due to reduction in revenue as a result of soft market conditions in the Metal Components and Engineered Building Systems segments.

'The company is committed to stringent cost containment despite a rising order backlog. We applaud the move to take costs out of the system, since we expect a deceleration in commercial construction activity starting in the first quarter of FY08.

'While the relative advantage of metal products holds a long-term promise of further gains in market share, in the interim, NCS will have to deal with the risk of a further rise in steel prices and loss of sales volume from production discipline. We recommend investors Hold shares of NCS in their portfolio.'

Expect LAMR Strength

The Buy rating has been maintained after some adjustment to the target price of media company Lamar Advertising Company (LAMR) by Zacks senior media analyst Steven Ralston, CFA. Here's what his latest update said:

'Lamar Advertising Company is benefiting from the rebound in pricing for local advertising and a stronger billboard business. Despite increased capital expenditures in the effort to digitize signs, higher expenses related to the recently acquired outdoor advertising assets, and higher interest expense from the increased debt level, free cash flow continues to expand.

'Interestingly, beneficial owner SPO Advisory Corporation has acquired an additional 1.5 million shares over the last few months, bringing its total holding to 9.5 million shares of the company. Lamar's stock has traded in a wide price-to-cash flow (P/CF) multiple range of 10 to 22 over the last five years.

'The recent acquisitions along with a growing economy generated strong net revenue for the company in the first nine months of 2007, driving the stock to the upper-end of the valuation range. As long as the economy continues to expand, we expect Lamar Advertising to trade in the upper-end of the historical P/CF valuation range. The Buy rating is maintained. The six-month target price of $61.50 is 19 times 12-month trailing cash flow.'

Sell MannKind Shares

Zacks senior biomedical analyst Grant Zeng, CFA has maintained his Sell rating after lowering the price target suitably to biopharmaceutical company MannKind Corporation (MNKD).