Goldman Sachs Starts W.R. Grace & Co. (GRA) at Conviction Buy

May 28, 2013 6:57 AM EDT Send to a Friend
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Price: $95.73 +0.97%

Rating Summary:
    9 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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Goldman Sachs initiates coverage on W.R. Grace & Co. (NYSE: GRA) with a Conviction Buy List rating and $105 price target, suggesting 31% upside, citing construction leverage and strong cash flow.

"In our view, investors should own GRA for exposure to rebounding construction markets and for its high-quality portfolio of assets that deliver above-average cash flow, margins and returns. In a construction recovery we see the potential for an additional $100mn-plus of EBITDA ($0.85-plus of EPS)," analyst Brian Maguire said.

He continued, "We also believe that GRA's valuation will improve when it emerges from Chapter 11 bankruptcy protection (expected in late 2013), gathers more coverage, or is included in the S&P family of indices."

For an analyst ratings summary and ratings history on W.R. Grace & Co. click here. For more ratings news on W.R. Grace & Co. click here.

Shares of W.R. Grace & Co. closed at $80.03 yesterday.


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