Wells Fargo Downgrades PolyOne (POL) to Market Perform; Near-Term Headwinds Lead Us To The Sidelines

Wells Fargo downgraded PolyOne (NYSE: POL) from Outperform to Market Perform with a price target range of $12-$13 (from $13-14).

Wells analyst says, "We are lowering our rating on POL shares, prompted by weaker-than-expected Q3 results in the Specialty platform and reflecting our view that meaningful near-term upside appears limited. Volumes fell 6.5% in Q3, with the Specialty platform logging mid- to high-teens declines. End-market demand has weakened, particularly in European high-margin wire & cable, and competition in PP&S has intensified. In addition, we believe the integration of ColorMatrix, while a long-term positive, could result in higher-than-expected costs, and the debt levels incurred to finance it pose a potential risk amid a slowing economic environment. We are trimming our 2011 and 2012 estimates by $0.02 and $0.05 respectively."

For more ratings news on PolyOne click here and for the rating history of PolyOne click here.

Shares of PolyOne closed at $11.11 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wells Fargo Downgrades Roku Inc. (ROKU) to Equal Weight
• Citizens Downgrades SoundThinking (SSTI) to Market Perform
• Wells Fargo Downgrades Bio-Techne Corp. (TECH) to Equal Weight