KeyBanc Starts Globe Specialty Metals (GSM) at Hold; Long-Term Opportunity Balanced via Macro Easing

September 9, 2011 7:13 AM EDT Send to a Friend
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Price: $16.26 +3.30%

Rating Summary:
    6 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 24 | New: 30
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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.


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