Nomura Securities Upgrades Platform Specialty Products (PAH) to Buy; Deep Discount and Return to Growth
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
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.
Nomura Securities upgraded Platform Specialty Products (NYSE: PAH) from Neutral to Buy with a price target of $11.00 (from $12.00), citing a return of growth in earnings and deep valuation discount.
Analyst Aleksey Yefremov commented, "We upgrade PAH shares to Buy, having maintained Neutral since our initiation on 15 December, 2014. Our Buy thesis is focused on resumption of more sustainable growth in EBITDA in the range of 5-9% in 2017-18, with free cash flow growth enhanced by significant financial leverage of 6.8x net debt/EBITDA. While high leverage remains one of our key concerns, we also see it as a tailwind in the context of growing EBITDA. To be clear, PAH remains a high risk/high payoff investment, primarily because of current level of debt (median leverage for our coverage is 2.0x), which still needs to be reduced. We trim our target price by $1 to $11, which still implies 39% potential upside. Our target price is based on 6.8% avg. ’17-18E FCF yield, implying 9.5x EV/EBITDA for 2017E. In our upside scenarios we see PAH shares valued at ~$14-16."
Shares of Platform Specialty Products closed at $7.89 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
- Jefferies Cuts Price Target on PG&E Corp. (PCG) to $65 Following Rate Case Decision
- Pivotal Research Downgrades Kroger (KR) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Related EntitiesNomura, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!