Mizuho Downgrades Orion Engineered Carbons S.A. (OEC) to Underperform

Mizuho analyst John Roberts downgraded Orion Engineered Carbons S.A. (NYSE: OEC) from Neutral to Underperform with a price target of $9.00.

The analyst comments: "The stock is up ~14% since reporting last quarter % (vs. S&P Materials index +5.5%), but we believe it could retest lows or lower given that industry fundamentals have not improved. We believe the stock bounce reflects hope that U.S. tire imports would decline, but they rose again in recently reported July data. Imported tires (containing carbon black) essentially compete with U.S. production of carbon black. Orion's debt was also recently changed to "Outlook Negative" by a major ratings agency. Net debt-to-EBITDA (NTM) is ~3.5x, close to all-time high, and compares to more normal targets closer to ~2x. Our price target of $9 represents 13% downside from current level."

For an analyst ratings summary and ratings history on Orion Engineered Carbons S.A. click here. For more ratings news on Orion Engineered Carbons S.A. click here.

Shares of Orion Engineered Carbons S.A. closed at $10.34 yesterday.

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