KeyBanc Starts Globe Specialty Metals (GSM) at Hold; Long-Term Opportunity Balanced via Macro Easing
Get Alerts GSM Hot Sheet
Price: $4.43 --0%
Rating Summary:
4 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 7 | New: 39
Rating Summary:
4 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 7 | New: 39
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KeyBanc initiates coverage on Globe Specialty Metals (NASDAQ: GSM) with a Hold.
KeyBanc analyst says, "Our neutral rating is supported by potential for near-term easing in growth across key global end markets like silicones, polysilicon, aluminum and steel, along with a lack of recovery thus far in spot polysilicon (key input into solar modules) pricing following the 35% decline from 1H11 highs ($51/kg from $79/kg), signaling softer demand. We also sense Street EPS expectations have a greater potential for easing if stable silicon metal pricing persists into CY12."
"We are establishing FY12 (June) and FY13 EPS estimates of $1.20 and $1.50, respectively, reflecting flattish silicon metal pricing realizations around $1.60 (in line with present spot levels) into CY12 and accretion from recently acquired coal operations in Central Appalachia. Our view compares to Street mean estimates of $1.32 and $1.80, respectively."
For more ratings news on Globe Specialty Metals click here and for the rating history of Globe Specialty Metals click here.
Shares of Globe Specialty Metals closed at $15.84 yesterday.
KeyBanc analyst says, "Our neutral rating is supported by potential for near-term easing in growth across key global end markets like silicones, polysilicon, aluminum and steel, along with a lack of recovery thus far in spot polysilicon (key input into solar modules) pricing following the 35% decline from 1H11 highs ($51/kg from $79/kg), signaling softer demand. We also sense Street EPS expectations have a greater potential for easing if stable silicon metal pricing persists into CY12."
"We are establishing FY12 (June) and FY13 EPS estimates of $1.20 and $1.50, respectively, reflecting flattish silicon metal pricing realizations around $1.60 (in line with present spot levels) into CY12 and accretion from recently acquired coal operations in Central Appalachia. Our view compares to Street mean estimates of $1.32 and $1.80, respectively."
For more ratings news on Globe Specialty Metals click here and for the rating history of Globe Specialty Metals click here.
Shares of Globe Specialty Metals closed at $15.84 yesterday.
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