Wells Fargo Downgrades Oiln (OLN) to Market Perform; Valuation Call
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Price: $24.95 -0.08%
Rating Summary:
2 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
2 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade OLN Now!
Wells Fargo downgraded Oiln (NYSE: OLN) from Outperform to Market Perform with a price target range of $22-$24.00.
Wells analyst says, "With OLN shares now trading within 3% of our valuation range, we are changing our investment rating to Market Perform. While we remain constructive on the long-term favorable trends in chloralkali, and believe that Winchester is establishing a higher base of post-surge earnings, we are less confident in the near term as seasonal weakness in chlorine appears to be exacerbated, with destocking among some derivatives. We expect to see overall ECU pricing up, but volumes taking a hit as OLN dials down its plants to meet lower chlorine demand. As mentioned below, OLN exceeded Q3 estimates by $0.02, but the outlook for Q4 is materially below consensus. We are lowering our 2011 EPS estimate from $1.90 to $1.65, and 2012 from $2.20 to $2.00."
For more ratings news on Oiln click here and for the rating history of Oiln click here.
Shares of Oiln closed at $21.39 yesterday, with a 52 week range of $16.11-$27.16.
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Wells analyst says, "With OLN shares now trading within 3% of our valuation range, we are changing our investment rating to Market Perform. While we remain constructive on the long-term favorable trends in chloralkali, and believe that Winchester is establishing a higher base of post-surge earnings, we are less confident in the near term as seasonal weakness in chlorine appears to be exacerbated, with destocking among some derivatives. We expect to see overall ECU pricing up, but volumes taking a hit as OLN dials down its plants to meet lower chlorine demand. As mentioned below, OLN exceeded Q3 estimates by $0.02, but the outlook for Q4 is materially below consensus. We are lowering our 2011 EPS estimate from $1.90 to $1.65, and 2012 from $2.20 to $2.00."
For more ratings news on Oiln click here and for the rating history of Oiln click here.
Shares of Oiln closed at $21.39 yesterday, with a 52 week range of $16.11-$27.16.
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