Jefferies Raises Price Target onQuaker Chemical (KWR), Forecasts Possible Q2 Upside
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Price: $170.72 --0%
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 12
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 12
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Jefferies is reiterating its Buy rating on shares of Quaker Chemical Corporation (NYSE: KWR) while raising its price target by $2 to $51.
The firm believes KWR will meet or beat its Q2 EPS estimates of $0.72, the Street is currently estimating $0.75.
With price initiatives that were discussed in Q1 now catching up with the initial surge in raw material prices from the start of the year, Quaker may need to release another round price increased in Q3 to maintain its 34 plus percent gross margins in Q4 and into 2012.
Jefferies anticipates that investors will focus on whether order trends might weaken in 2H11-2012, particularly given monetary tightening in the emerging markets and lackluster demand trends in the EU and North America.
Currently on a segment level, the firm forecasts 21 percent sales growth in Metal working Process Chemicals, but a 6 percent decline in profits due to adverse raw material trends. Coatings sales are estimated to rise 18 percent while profits only grow by 4 percent.
Jefferies 2011 and 2012 EPS estimates are $3.25 and $3.65 and its revenues estimates for the two years are $660 million and $720 million, which represents a 10 percent growth in revenue year-over-year.
For more ratings news on Quaker Chemical Corporation click here and for the rating history of Quaker Chemical Corporation click here.
Shares of Quaker Chemical Corporation closed at $43.46 yesterday.
The firm believes KWR will meet or beat its Q2 EPS estimates of $0.72, the Street is currently estimating $0.75.
With price initiatives that were discussed in Q1 now catching up with the initial surge in raw material prices from the start of the year, Quaker may need to release another round price increased in Q3 to maintain its 34 plus percent gross margins in Q4 and into 2012.
Jefferies anticipates that investors will focus on whether order trends might weaken in 2H11-2012, particularly given monetary tightening in the emerging markets and lackluster demand trends in the EU and North America.
Currently on a segment level, the firm forecasts 21 percent sales growth in Metal working Process Chemicals, but a 6 percent decline in profits due to adverse raw material trends. Coatings sales are estimated to rise 18 percent while profits only grow by 4 percent.
Jefferies 2011 and 2012 EPS estimates are $3.25 and $3.65 and its revenues estimates for the two years are $660 million and $720 million, which represents a 10 percent growth in revenue year-over-year.
For more ratings news on Quaker Chemical Corporation click here and for the rating history of Quaker Chemical Corporation click here.
Shares of Quaker Chemical Corporation closed at $43.46 yesterday.
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