Baird Raises Masco Price Target to $74 from $70 Amid Solid Q2 Execution

Baird raised the price target for Masco (MAS) to $74 from $70 and maintained a Neutral rating. The firm updated its model after Q2 results showed solid execution in a volatile market.

Masco Corporation (MAS) reported its second-quarter 2025 earnings, showcasing strong performance in a challenging geopolitical and macroeconomic environment. The company's adjusted earnings per share (EPS) of $1.30 exceeded the Zacks Consensus Estimate of $1.08, while net sales of $2,051 million beat the consensus mark of $2,004 million [1].

Masco's president and CEO Jon Nudi attributed the company's performance to effective execution, highlighting its ability to navigate a dynamic market. The company's adjusted operating margin expanded 100 basis points (bps) year over year to 20.1%, with adjusted EBITDA of $449 million [1].

The Plumbing Products segment experienced a 5% year-over-year increase in net sales to $1.31 billion, while the Decorative Architectural Products segment saw a 12% decline in sales to $738 million [1]. Despite the decline, both segments demonstrated improved operating margins, with the Decorative segment's margin expanding 50 bps to 21.3% [1].

Masco's liquidity position remained robust, with total liquidity of $1.34 billion as of June 30, 2025, and long-term debt of $2.94 billion, flat from the previous year-end [1]. The company also repurchased 1.6 million shares for about $101 million during the quarter [1].

Robert W. Baird recently raised its price target for Masco to $74 from $70, maintaining a Neutral rating after the Q2 results. The firm updated its model to reflect the company's solid execution in a volatile market [2].

Masco's stock traded up $3.78 on July 31, reaching $69.51, following the earnings release. The company's consensus rating is currently "Hold," with a consensus price target of $74.03 [2].

References:
[1] https://www.nasdaq.com/articles/masco-q2-earnings-and-sales-surpass-estimates-stock
[2] https://www.marketbeat.com/instant-alerts/masco-nysemas-issues-fy-2025-earnings-guidance-2025-07-31/