DA Davidson Cuts Price Target on Greif (GEF), Sees Growth Story Still Intact
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Price: $88.56 +0.61%
Rating Summary:
4 Buy, 8 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
4 Buy, 8 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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DA Davidson is reaffirming its Buy rating on shares of Greif Inc. (NYSE: GEF) while lowering its price target from $80 to $70.
The company released its third quarter results with record sales and EBITDA, but adjusted earnings of $1.34 fell short of the firms $1.40 estimate due to lower demand in the month of July in North America and Europe.
The firm notes that the third quarter was more of a bump in the road instead of being turn in the wrong direction.
To go inline with current market conditions and managements fourth quarter EPS guidance of $1.07-$1.22, the firm is lowering its 2011 and 2012 EPS estimates from $4.90 and $5.70 to $4.25 and $5.25.
An analyst at DA Davidson comments, "The sharp drop in business activity in July was due to factors well beyond Greif’s control – the company’s recent difficulties are really a warning sign about global economic activity. If the economy is indeed rolling over, few companies can flex their cost structures as aggressively and quickly as Greif can and will."
For more ratings news on Greif Inc. click here and for the rating history of Greif Inc. click here.
Shares of Greif Inc. closed at $50.12 yesterday.
The company released its third quarter results with record sales and EBITDA, but adjusted earnings of $1.34 fell short of the firms $1.40 estimate due to lower demand in the month of July in North America and Europe.
The firm notes that the third quarter was more of a bump in the road instead of being turn in the wrong direction.
To go inline with current market conditions and managements fourth quarter EPS guidance of $1.07-$1.22, the firm is lowering its 2011 and 2012 EPS estimates from $4.90 and $5.70 to $4.25 and $5.25.
An analyst at DA Davidson comments, "The sharp drop in business activity in July was due to factors well beyond Greif’s control – the company’s recent difficulties are really a warning sign about global economic activity. If the economy is indeed rolling over, few companies can flex their cost structures as aggressively and quickly as Greif can and will."
For more ratings news on Greif Inc. click here and for the rating history of Greif Inc. click here.
Shares of Greif Inc. closed at $50.12 yesterday.
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