Canaccord Genuity Reiterates a 'Buy' on Horsehead Holding (ZINC); Taking A More Conservative View
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Price: $26.58 -0.37%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity reiterates a 'Buy' on Horsehead Holding (NASDAQ: ZINC), but lowers price target from $20 to $13.50.
Canaccord analyst, Eric Prouty, said, "We remain bullish on Horsehead as its plan to construct a new zinc plant will position the company as one of the industry’s low-cost producers of zinc. While we reduce our 2011 and 2012 estimates largely to reflect lower zinc metal price assumptions, the company’s hedges offer downside protection to our estimates if zinc prices go below $0.85/lb."
"We now estimate LME zinc prices of $0.93 and $0.95 in Q3 and Q4, respectively, vs. our prior estimates of $1.00 and $1.00. We also reduced our 2012 LME zinc price assumption to $1.00, from $1.20 previously...Taken together, all these adjustments to our model cause us to reduce our 2011 revenue/EPS estimates to $408M/$0.47, from $428M/$0.76. Our 2012 estimates go to $456M/$0.78, from $499M/$1.35."
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 $8.35 yesterday.
Canaccord analyst, Eric Prouty, said, "We remain bullish on Horsehead as its plan to construct a new zinc plant will position the company as one of the industry’s low-cost producers of zinc. While we reduce our 2011 and 2012 estimates largely to reflect lower zinc metal price assumptions, the company’s hedges offer downside protection to our estimates if zinc prices go below $0.85/lb."
"We now estimate LME zinc prices of $0.93 and $0.95 in Q3 and Q4, respectively, vs. our prior estimates of $1.00 and $1.00. We also reduced our 2012 LME zinc price assumption to $1.00, from $1.20 previously...Taken together, all these adjustments to our model cause us to reduce our 2011 revenue/EPS estimates to $408M/$0.47, from $428M/$0.76. Our 2012 estimates go to $456M/$0.78, from $499M/$1.35."
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 $8.35 yesterday.
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