NCI Building Systems (NYSE:NCS) Backlogs Should Improve Says Canaccord

Assuming the possibility of an upturn in the nonresidential construction market later in 2011, Canaccord Genuity sees NCI Building Systems (NYSE:NCS) being an early beneficiary of the expected trend.

Canaccord says, "From our perspective, NCI represents an interesting play on the shift toward green building practices given its various products that improve energy efficiency, such as “cool” metal roofs, retrofit roofing and insulated metal panels. Encouragingly, the nonresidential construction market looks poised for the start of an upturn later this year, in our view, based on our conversations with industry participants and billings trend data from the AIA...NCI will be an early beneficiary of a nonresidential construction upturn, in our view...We look for backlogs to show improvement."

Canaccord Genuity maintains a "Buy" rating on NCI Building Systems (NCS), which closed Monday at $12.84, gaining $0.39, or 3.13 percent. Canaccord has a price target of $17.50 on NCI.