Jefferies Raises price Target on Ferroglobe plc (GSM) to $14.50; Reiterates Buy
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Jefferies reiterated a Buy rating on Ferroglobe plc (NASDAQ: GSM), and raised the price target to $14.50 (from $10.25), following the company's 3Q earnings report. Management increased its synergy target from $65M previously to $85M with $43M achieved YTD and $60M expected for 2016. Several inflationary factors have been putting upward pressure on the cost curve. Spot US Si prices have edged up +$0.02-0.03/lb to $0.90-0.95 in recent weeks while Mg ore is up +63% since the beginning of October.
Analyst Martin Englert commented, "While GSM’s 3Q16 results were below expectations, we believe the inflationary pressured pricing environment and balanced inventories overshadow this. Mgmt. noted improving spot price trends for Si & alloys and a firm stance on contract pricing eliminating discounts. We believe prices inflecting will contribute to positive momentum for the shares and we reiterate our Buy rating on our increased $14.50 (+$4.25) PT."
Shares of Globe Specialty Metals closed at $11.71 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesJefferies & Co, Earnings
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