KeyBanc Downgrades Harsco Corp (HSC) to Hold; Persisting Demand Challenges in Two Largest Business Segments, Coupled with Increasing Concerns Around Capital Allocation

KeyBanc downgraded Harsco Corporation (NYSE: HSC) from Buy to Hold.

KeyBanc analyst says, "Following a reassessment of ratings across our coverage universe, we believe a HOLD rating on HSC is more appropriate. In short, persisting demand pressures across its two largest businesses, Metals & Minerals (48% of total sales; 39% of mix is Western Europe) and Infrastructure (34% of total sales; 56% of mix is Western Europe), are setting up 2012 to be a back-end loaded year from an earnings perspective, with risk of further downward earnings revisions should challenges persist into 2H12. Given limited demand visibility coupled with lingering concerns over capital allocation decisions and overall execution, we do not see HSC shares outperforming...Lowering our 2012E to $1.55 (from $1.65)."

For an analyst ratings summary and ratings history on Harsco Corporation click here. For more ratings news on Harsco Corporation click here.

Shares of Harsco Corporation closed at $21.34 yesterday.

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