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KeyBanc Maintains a 'Buy' Rating on OMNOVA Solutions (OMN); Raises PT & Estimates

October 8, 2009 10:50 AM EDT
OMN Hot Sheet
Rating Summary:
    1 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
KeyBanc maintains a 'Buy' rating on OMNOVA Solutions Inc. (NYSE: OMN), raises PT to $9 from $6.25.

KeyBanc analyst says, "We are raising our FY09 EPS estimate to $0.53 from our previous estimate of $0.34. The strong 3Q09 earnings beat accounts for approximately $0.13 of the upside, with the remainder coming from an improved 4Q09 outlook. We are raising our 4Q09 EPS estimate by $0.06, and now see earnings of $0.18 due to sustainable margin improvement...Improved Cost Management: We feel OMN is much better positioned on a raw material basis relative to historical levels given a shift to indexed-based pricing (65% of Performance Chemicals) and a rational pricing environment in the SB latex market (dominated by OMN and DOW (NYSE: DOW))."

To see more analyst ratings on OMN Click Here.


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