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Jefferies Maintains a 'Hold' on Cabot Corp. (CBT); Raising Numbers After Solid Start to 2012

February 3, 2012 10:22 AM EST
CBT Hot Sheet
Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Jefferies maintains a 'Hold' on Cabot Corp. (NYSE: CBT) price target raised from $32 to $44.

Jefferies analyst says, "Despite soft volumes in Rubber Blacks and Performance in Q1, trends began to improve in January with Performance up almost 10% and Rubber Blacks exhibiting a more muted recovery. We expect FY12 to be back-end loaded as new capacity comes on stream and energy efficiency offsets inventory reductions (one new energy center to be commissioned in Europe). We estimate the full year will benefit from $0.10-$0.15 from 2.5m recent share repurchases (at less than $32/share) and $0.33 from pricing while F/X should be an estimated $0.04-$0.05 headwind. We are raising FY12 $0.20 to $3.05 and forecast $3.60 for FY13."

"Cabot remains confident in its ability to achieve $4.50 EPS in FY14 organically, a 12% cAGR supported by pricing, demand growth, new products and an estimated $0.17-$0.23 from productivity and $0.65-$1.00 from new capacity."

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

Shares of Cabot Corp. closed at $41.07 yesterday, with a 52 week range of $22.45-$48.77.


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