Rosenblatt Downgrades Haynes International (HAYN) to Neutral

August 29, 2016 9:02 AM EDT
Get Alerts HAYN Hot Sheet
Price: $42.17 -0.68%

Rating Summary:
    2 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Rosenblatt downgraded Haynes International (NASDAQ: HAYN) from Buy to Neutral with a price target of $39.00.

Analyst Chris Olin commented, "We are downgrading Haynes International (HAYN) to a NEUTRAL recommendation as the shares have surpassed our 12-month price objective. The stock appears to be fairly valued near the $39-40 level. Despite our continued bullish outlook for the specialty materials group and suppliers levered to the commercial aerospace industry (45-50% of company revenues), we turned our focus to a few developments that may disrupt the earnings cadence over the next 2-3 quarters. Specifically, we believe HAYN could be impacted by lost production days related to minor tornado damage caused to the Kokomo facility (or incur maintenance-related higher costs in the quarter). Moreover, incoming orders for industrial-related products are likely to remain slow over the next few months, partially offset by the recognition of special projects working through backlogs. Our revised 4Q EPS outlook is $0.19 (down $0.16) which assumes some shipping/production delays at Kokomo and continued margin compression associated with the commodity nickel price mismatch. Importantly, we still believe the company is on track to generate $2.00+ of earnings in FY2017."

For an analyst ratings summary and ratings history on Haynes International click here. For more ratings news on Haynes International click here.

Shares of Haynes International closed at $38.59 yesterday.

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