Jefferies Cuts Price Target on PolyOne (POL) to $36 Ahead of 3Q Report

October 12, 2016 7:27 AM EDT
Get Alerts POL Hot Sheet
Price: $31.14 -0.03%

Rating Summary:
    9 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 19 | New: 11
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Jefferies maintained a Hold rating on PolyOne (NYSE: POL), and cut the price target to $36.00 (from $40.00), ahead of the company's 3Q earnings report. Brexit has been noted as a $0.01-$0.02 headwind in 2H16, PVC pricing is on the rise, and an increase in SG&A spending for growth initiatives will likely keep margins in check. Jefferies cut 2016 EPS estimates $0.05 to $2.15 and 2017 $0.10 to $2.35 to account for the slower growth.

Analyst Laurence Alexander commented, "Further margin expansion in the core GCAI, Distribution, GSEM, and PP&S segments appears challenging, and DSS improvements will likely account for most of the expected margin growth through 2020E. Our 2016E-2018E FCF estimates suggest a 6% average yield, and the 2017E-2018E EPS bridge hinges on successful cash flow deployment."

For an analyst ratings summary and ratings history on PolyOne click here. For more ratings news on PolyOne click here.

Shares of PolyOne closed at $32.03 yesterday.

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