Davenport Downgrades AMCOL International (ACO) to Neutral; Valuation Call

October 27, 2009 11:02 AM EDT

Davenport downgrades AMCOL International (NYSE: ACO) from Buy to Neutral.

Davenport analyst says, "Following the 3Q2009 report, we are raising our 4Q2009 EPS estimate from $0.19 to $0.29, largely due to better margin assumptions in the Minerals segment. Along with the 3Q beat, this takes our FY2009 EPS estimate from $0.79 to $1.10. For FY2010, our EPS estimate goes from $1.35 to $1.68...We continue to believe that AMCOL’s long-term outlook is positive and that the company will continue to grow and benefit from a rebound in economic activity and its strategic investments around the world (including particularly its South Africa chrome sands project)...That said, AMCOL’s stock has had a nice run recently and is up 44.2% since our upgrade on August 21 (vs. a 4.2% gain in the S&P 500). And, at 17.3x our FY2010 EPS estimate, we feel that the shares are fairly valued compared to the company’s long-term average trailing PE of 17.6x. As such, we are downgrading the shares of AMCOL to Neutral."

To see more analyst ratings on ACO Click Here.

Amcol International Corporation, through its subsidiaries, operates as a specialty minerals company in the Americas, Europe, and the Asia Pacific.

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