Auriga Maintains a 'Buy' on Globe Specialty Metals (GSM); Revising Numbers After In-line Results
GSM Hot Sheet
Rating Summary:2 Buy, 3 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 18 | New: 27
Auriga maintains a 'Buy' on Globe Specialty Metals (NASDAQ: GSM) price target raised from $17 to $20.
Auriga analyst says, "GSM reported pro-forma EPS results of $0.22, which was essentially in-line with pre-announced levels. We believe the company remains particularly well-positioned within the silicon metal industry, throughout the cycle, given it is a low cost producer and is backward integrated from a raw material perspective. The combination of end markets continuing to improve and the integration of the Alden Resources (coal assets) acquisition progressing, further backward integrating the company, should drive earnings growth. While we are revising our fiscal 2012 and 2013 EPS estimates to $0.90 and $1.30 from $1.02 and $1.45 (partly to incorporate more conservative pricing assumptions), we are also initiating a fiscal 2014 EPS estimate of $1.70. Consequently, we are raising our price target to $20 using our calendar 2013 EPS estimate versus 2012 previously. At the current quote, our price target offers approximately 30% upside."
For an analyst ratings summary and ratings history on Globe Specialty Metals click here. For more ratings news on Globe Specialty Metals click here.
Shares of Globe Specialty Metals closed at $15.00 yesterday, with a 52 week range of $12.25-$25.67.
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Auriga analyst says, "GSM reported pro-forma EPS results of $0.22, which was essentially in-line with pre-announced levels. We believe the company remains particularly well-positioned within the silicon metal industry, throughout the cycle, given it is a low cost producer and is backward integrated from a raw material perspective. The combination of end markets continuing to improve and the integration of the Alden Resources (coal assets) acquisition progressing, further backward integrating the company, should drive earnings growth. While we are revising our fiscal 2012 and 2013 EPS estimates to $0.90 and $1.30 from $1.02 and $1.45 (partly to incorporate more conservative pricing assumptions), we are also initiating a fiscal 2014 EPS estimate of $1.70. Consequently, we are raising our price target to $20 using our calendar 2013 EPS estimate versus 2012 previously. At the current quote, our price target offers approximately 30% upside."
For an analyst ratings summary and ratings history on Globe Specialty Metals click here. For more ratings news on Globe Specialty Metals click here.
Shares of Globe Specialty Metals closed at $15.00 yesterday, with a 52 week range of $12.25-$25.67.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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