FBR Capital Maintains a 'Market Perform' on Horsehead Holding (ZINC); Raising Estimates and Price Target
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Price: $26.73 -0.6%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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FBR Capital maintains a 'Market Perform' on Horsehead Holding (NASDAQ: ZINC), raises PT from $12 to $16.
FBR analyst says, "...Now, with one full quarter having passed since operations returned to normal (post–Monaca incident), we believe management should have shifted its focus onto strategic review of growth options and deployment of its significant cash balance. We note that the stock has generated phenomenal returns of 21% YTD (versus 8% for the S&P 500) and could take a breather, given the macro concerns (weak China PMI, declining zinc prices, high oil prices, and sovereign debt concerns). While we maintain our rating on shares for now, we continue to look for an attractive entry point to become more constructive on the name."
"We are increasing our 2011 EPS/EBITDA estimates to $1.04/$91M, from $0.90/$81M, primarily to reflect our updated zinc commodity outlook ($1.08/lb, from $0.95/lb previously). We are also introducing our 2012 EPS/EBITDA estimates at $1.18/$100M. We note that ZINC has approximately $13M of pending insurance claims, which could provide additional upside to our 2011 numbers."
For more ratings news on Horsehead Holding click here and for the rating history of Horsehead Holding click here.
Shares of Horsehead Holding closed at $15.92 yesterday.
FBR analyst says, "...Now, with one full quarter having passed since operations returned to normal (post–Monaca incident), we believe management should have shifted its focus onto strategic review of growth options and deployment of its significant cash balance. We note that the stock has generated phenomenal returns of 21% YTD (versus 8% for the S&P 500) and could take a breather, given the macro concerns (weak China PMI, declining zinc prices, high oil prices, and sovereign debt concerns). While we maintain our rating on shares for now, we continue to look for an attractive entry point to become more constructive on the name."
"We are increasing our 2011 EPS/EBITDA estimates to $1.04/$91M, from $0.90/$81M, primarily to reflect our updated zinc commodity outlook ($1.08/lb, from $0.95/lb previously). We are also introducing our 2012 EPS/EBITDA estimates at $1.18/$100M. We note that ZINC has approximately $13M of pending insurance claims, which could provide additional upside to our 2011 numbers."
For more ratings news on Horsehead Holding click here and for the rating history of Horsehead Holding click here.
Shares of Horsehead Holding closed at $15.92 yesterday.
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