Auriga Maintains a 'Buy' on GrafTech International (GTI); Guidance Weak, But May Be Opportunity for L-T Investors
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Price: $2.70 --0%
Rating Summary:
1 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
Rating Summary:
1 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
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Auriga maintains a 'Buy' on GrafTech International (NYSE: GTI) price target lowered from $20 to $17.
Auriga analyst says, "GTI reported adjusted 4Q11 EPS results of $0.31 versus our estimate of $0.28 and consensus of $0.30. Full-year 2011 EBITDA was $269m versus our estimate of $275m and the guidance range of $275m - $285m. More importantly, the company issued full-year 2012 EBITDA guidance of $250m to $290m. This was well below the full-year consensus EBITDA estimate of $409m (range: $365m - $453m) and our estimate of $431m. The first quarter is expected to be the weakest and is targeted to be in a range of $35m to $45m, primarily due to low steel production rates. Consequently, we are reducing our fiscal 2012 EPS estimate to $0.95 from $1.70. At the time, consensus was $1.61 with a range of $1.40 to $1.95...However, given the share price weakness, the expectation for recovering carbon steel utilization rates and the company's recently updated share repurchase program (representing about 7% of shares outstanding), we highlight these shares for longer-term value investors."
For an analyst ratings summary and ratings history on GrafTech International click here. For more ratings news on GrafTech International click here.
Shares of GrafTech International closed at $13.25 yesterday.
Auriga analyst says, "GTI reported adjusted 4Q11 EPS results of $0.31 versus our estimate of $0.28 and consensus of $0.30. Full-year 2011 EBITDA was $269m versus our estimate of $275m and the guidance range of $275m - $285m. More importantly, the company issued full-year 2012 EBITDA guidance of $250m to $290m. This was well below the full-year consensus EBITDA estimate of $409m (range: $365m - $453m) and our estimate of $431m. The first quarter is expected to be the weakest and is targeted to be in a range of $35m to $45m, primarily due to low steel production rates. Consequently, we are reducing our fiscal 2012 EPS estimate to $0.95 from $1.70. At the time, consensus was $1.61 with a range of $1.40 to $1.95...However, given the share price weakness, the expectation for recovering carbon steel utilization rates and the company's recently updated share repurchase program (representing about 7% of shares outstanding), we highlight these shares for longer-term value investors."
For an analyst ratings summary and ratings history on GrafTech International click here. For more ratings news on GrafTech International click here.
Shares of GrafTech International closed at $13.25 yesterday.
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