Wells Fargo Downgrades Greif Inc. (GEF) to Market Perform
Tweet Send to a FriendGet Alerts GEF Hot Sheet
Price: $51.28 +0.31%
Rating Summary:
1 Buy, 6 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
1 Buy, 6 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade GEF Now!
Wells Fargo downgraded Greif Inc. (NYSE: GEF) from Outperform to Market Perform and cut its valuation range from $51-$53 to $40-$42.
The firm comments, "Deterioration in the macro-environment and reduced visibility into end markets cause us to view GEF with a heightened sense of risk. We maintain that GEF has several opportunities (mostly internally focused) to drive earnings improvement over the next 6-12 months; however we believe other factors (competitive landscape and waning volume environment) will likely mute progress through at least FH1 2013."
The firm cut FQ4 2012 estimate to $0.65 from $0.75 on movements in currency, weaker-than-anticipated demand, inefficiencies related to Hurricane Sandy as well as continued margin pressure in some of the company’s Industrial Packaging businesses. The firm also cut FY2012 EPS and EBITDA estimates to $2.73 (prior $2.82) and $486MM, respectively. Our FY2013 and FY2014 ests go to $3.00 (prior $3.30) and $3.50 (prior $3.80), respectively.
GEF is scheduled to report FQ4 2012 earnings after the market close Wednesday, December 5.
For an analyst ratings summary and ratings history on Greif Inc. click here. For more ratings news on Greif Inc. click here.
Shares of Greif Inc. closed at $42.48 yesterday, with a 52 week range of $38.78-$56.88.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The firm comments, "Deterioration in the macro-environment and reduced visibility into end markets cause us to view GEF with a heightened sense of risk. We maintain that GEF has several opportunities (mostly internally focused) to drive earnings improvement over the next 6-12 months; however we believe other factors (competitive landscape and waning volume environment) will likely mute progress through at least FH1 2013."
The firm cut FQ4 2012 estimate to $0.65 from $0.75 on movements in currency, weaker-than-anticipated demand, inefficiencies related to Hurricane Sandy as well as continued margin pressure in some of the company’s Industrial Packaging businesses. The firm also cut FY2012 EPS and EBITDA estimates to $2.73 (prior $2.82) and $486MM, respectively. Our FY2013 and FY2014 ests go to $3.00 (prior $3.30) and $3.50 (prior $3.80), respectively.
GEF is scheduled to report FQ4 2012 earnings after the market close Wednesday, December 5.
For an analyst ratings summary and ratings history on Greif Inc. click here. For more ratings news on Greif Inc. click here.
Shares of Greif Inc. closed at $42.48 yesterday, with a 52 week range of $38.78-$56.88.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Jefferies Lifts Numbers on Diana Shipping (DSX) Post Q1
- Toll Bros. (TOL) Q2 Solid but Not Much Better Than Peers
- Canaccord Genuity Boosts Price Target on Akamai (AKAM) Citing Momentum
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst EPS View, Analyst PT Change, DowngradesRelated Entities
Earnings, Wells Fargo
Login with Facebook
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!
