Oppenheimer Cuts Price Target on Ferroglobe plc (GSM) to $12; Reiterates Outperform

August 26, 2016 9:50 AM EDT
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Price: $9.59 -1.74%

Rating Summary:
    7 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 12
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Oppenheimer maintained an Outperform rating on Ferroglobe plc (NASDAQ: GSM), and cut the price target to $12.00 (from $14.00), following the company's 2Q earnings report. GSM reported revenues of $398M, down 6% sequentially from $423.5M. SiM prices for the quarter averaged $1.01/lbs, down from $1.08 realized in 1Q16.

Analyst Ian Zaffino commented, "Ferroglobe reported very weak 2Q16 results, with adjusted EBITDA of $17.2M, vs. our/Street estimates of $50M/$56M. We believe there were other one-time addbacks not called out, such as inventory losses, yield issues and power renegotiations in Venezuela, which would have helped EBITDA by $15M-$20M. Even so, results would still be below estimates, as SiM prices remain weak. EBITDA in 2017 could improve, as the post-merger Ferroglobe signs new contracts as a combined company, vs. bidding against itself. Lower 2016-17E EBITDA to $119M/$135M, from $174M/ $176M. Lower price target to $12 from $14 based on our reduced outlook."

For an analyst ratings summary and ratings history on Globe Specialty Metals click here. For more ratings news on Globe Specialty Metals click here.

Shares of Globe Specialty Metals closed at $9.40 yesterday.

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