Jefferies Cuts Price Target on W.R. Grace & Co. (GRA); Reiterates Buy

October 27, 2016 10:02 AM EDT
Get Alerts GRA Hot Sheet
Price: $66.03 +2.29%

Rating Summary:
    7 Buy, 7 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 27 | New: 28
Trade GRA Now!
Join SI Premium – FREE

Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.

Jefferies maintained a Buy rating on W.R. Grace & Co. (NYSE: GRA), and cut the price target to $80.00 (from $89.00), following the company's 3Q earnings report. Adjusted EPS of $0.80 was $0.04 above consensus. Elevated refinery inventory and weak specialist catalyst demand in China are likely headwinds into 2017, but the ramp of the Takreer plant and a 1%-2% improvement in catalyst price/mix should support the 11% EPS CAGR projected through 2020.

Analyst Laurence Alexander commented, "Q3 EPS of $0.80 beat consensus and our estimate by 0.04, yet the 2016 range remains pegged at $3.05-3.10. Takreer is ramping up, but refinery inventory and PO licensing revenue remain headwinds. The EPS bridge to 2017-2018 hinges on $20m in M&A synergies, modest pricing and a return to trend organic growth. 2016E FCF yield is 6%, which should translate into some EPS lift next year."

For an analyst ratings summary and ratings history on W.R. Grace & Co. click here. For more ratings news on W.R. Grace & Co. click here.

Shares of W.R. Grace & Co. closed at $66.02 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Jefferies & Co, Earnings

Add Your Comment