UPDATE - Canaccord Genuity Downgraded KMG Chemicals (KMGB) to Hold; Rising Costs Pressure Earnings; Lowering Numbers
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Price: $17.82 --0%
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Canaccord Genuity downgraded KMG Chemicals (NASDAQ: KMGB) from Buy to Hold, price target from $22 to $15.
Canaccord analyst, Eric Prouty, said, "While KMG continues to make progress integrating the assets of General Chemical, rising cost pressures within both the Electronic Chemicals and Wood Treatment businesses cause us to significantly lower our earnings estimates. At this juncture, we feel it is prudent to step to the sidelines to “let the dust settle,” particularly as we anticipate the slowing economy is likely to exert additional pressure on the Elec. Chemicals business."
"As a result, we lower our FQ4/11 EPS estimate to $0.11, from $0.32 previously. We note that we are raising our revenue estimate in this quarter, from $69M to $73.5M, as sales in both the Elec. Chemicals and Wood Treatment segments were stronger than we had anticipated."
To see more ratings changes on KMGB, Click Here
Canaccord analyst, Eric Prouty, said, "While KMG continues to make progress integrating the assets of General Chemical, rising cost pressures within both the Electronic Chemicals and Wood Treatment businesses cause us to significantly lower our earnings estimates. At this juncture, we feel it is prudent to step to the sidelines to “let the dust settle,” particularly as we anticipate the slowing economy is likely to exert additional pressure on the Elec. Chemicals business."
"As a result, we lower our FQ4/11 EPS estimate to $0.11, from $0.32 previously. We note that we are raising our revenue estimate in this quarter, from $69M to $73.5M, as sales in both the Elec. Chemicals and Wood Treatment segments were stronger than we had anticipated."
To see more ratings changes on KMGB, Click Here
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