HNI Corporation: Doubling Down On Workplace Furnishings

Dividend Yield Theorist10.14K FollowersFollow5ShareSavePlay(8min)CommentsSummaryHNI was previously rated a Sell, and I am upgrading it to a HOLD as the stock price has suffered significantly since my initial coverage.The acquisition of Steelcase increased Workplace Furnishing results dramatically, with segment revenue up about 50%, and 8.6% on an organic basis.I am monitoring management's ability to realize $100M+ in synergies related to the Steelcase acquisition.My valuation model indicates the stock is trading for a considerable discount, but the reward could outweigh the risk. ModernewWorld/DigitalVision via Getty Images Investment Thesis HNI Corporation looks to be trading for quite a bargain right now, while offering a good return potential. There are some headwinds facing the business right now, and a lot of the projected growth is basedThis article was written byDividend Yield Theorist10.14K FollowersFollowI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Seeking Alpha community.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.