Barclays Raises Estimates on Calumet Specialty Products (CLMT); Royal Purple Acquisition Will Impove Cash Flow

June 12, 2012 5:00 PM EDT
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Price: $4.30 --0%

Rating Summary:
    0 Buy, 13 Hold, 3 Sell

Rating Trend: Up Up

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Barclays maintains an 'Equalweight' on Calumet Specialty Products Partners (NASDAQ: CLMT) price target of $27.00.

Analyst, Richard Gross, said, "Pending specialty products transaction ($335mm Royal Purple acquisition) should be modestly accretive, equity pre-financed. We believe the recently-announced $335mm Royal Purple acquisition enhances CLMT's cash flow stability and provides some upside potential. Though long-term debt is likely to be issued, the partnership's opportunistic equity offering in May mitigates acquisition financing risk as CLMT has sufficient liquidity to complete the acquisition without the need to access the equity capital markets."

FY12 EPS estimate raised from $2.41 to $2.46 and FY13 from $2.14 to $2.30.

For an analyst ratings summary and ratings history on Calumet Specialty Products Partners click here. For more ratings news on Calumet Specialty Products Partners click here.

Shares of Calumet Specialty Products Partners closed at $22.39 yesterday.

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