Seeking Alpha
Editor's notes: AMWD is carving out increasing market share and growing margins. Amidst the recent housing-related swoon, the combination could mean 25% upside.

American Woodmark's stock joined the majority of housing related companies currently in a five-month lull when investors pressed pause over concerns of a rising rate environment. We believe these over-emotional fears have now weakened enough to allow fundamentals to regain the spotlight and present an attractive risk/reward opportunity in AMWD. A focus on market share gain within a rapidly growing market and margin expansion, led us to a FY2014 target of $42. This represents ~26% upside over about a six-month time span.

Background

American Woodmark Corp. (AMWD) is a manufacturer of kitchen cabinets and bathroom vanities for the new home construction and remodeling markets. The company offers 550 product lines, mostly at mid-tier prices under the popular brand...

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