KeyBanc Downgrades OM Group (OMG) to Hold, Near-Tearm to Ugly to Recommend
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Price: $33.94 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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KeyBanc has downgraded shares of OM Group (NYSE: OMG) to a Hold rating from its previous rating of Buy following its Q4 results. The firm also terminated its $36 price target given its near tear potential.
The firm notes given its recent disappointing Q4 results and future outlook, combined with declining cobalt prices, it has become hard to recommend shares of OMG.
KeyBanc is not completely writing off the stock has it highlights OMG's current book value is roughly $41 per share.
An analyst at KeyBanc comments, "While the stock is attractive on several metrics, identifying a catalyst to move shares significantly higher with falling cobalt prices and a challenging 1H12 outlook is difficult. That said, we do recognize that a deep value, long-term investor could see significant returns if the Company is able to successfully implement its strategy, move the focus off cobalt, and improve its overall returns."
For FY12 and FY13, the firm forecasts EPS of $2.95 and $3.30.
For an analyst ratings summary and ratings history on OM Group click here. For more ratings news on OM Group click here.
Shares of OM Group closed at $26.88 yesterday.
The firm notes given its recent disappointing Q4 results and future outlook, combined with declining cobalt prices, it has become hard to recommend shares of OMG.
KeyBanc is not completely writing off the stock has it highlights OMG's current book value is roughly $41 per share.
An analyst at KeyBanc comments, "While the stock is attractive on several metrics, identifying a catalyst to move shares significantly higher with falling cobalt prices and a challenging 1H12 outlook is difficult. That said, we do recognize that a deep value, long-term investor could see significant returns if the Company is able to successfully implement its strategy, move the focus off cobalt, and improve its overall returns."
For FY12 and FY13, the firm forecasts EPS of $2.95 and $3.30.
For an analyst ratings summary and ratings history on OM Group click here. For more ratings news on OM Group click here.
Shares of OM Group closed at $26.88 yesterday.
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