Auriga Maintains a 'Buy' on GrafTech International (GTI); Adjusting 2012 Estimates to Low End

Auriga maintains a 'Buy' on GrafTech International (NYSE: GTI) price target of $17.00.

Analyst, Dan Whalen, said, "As we approach 1Q12 earnings season, we are revising down our 1Q12 and full year 2012 estimates to reflect a combination of subdued steel production trends, (more specifically in Europe), a difficult graphite electrode pricing environment, and preliminary 1Q12 results for carbon steel players generally coming in at the lower end of expectations. Our 1Q12 EBITDA estimate is now $37M, down from $43M, versus management's guidance range of $35M - $45M. Given the above trends may persist, we are also revising down our full-year 2012 EBITDA estimate to $263M from $290M (guidance is: $250M - $290M). However, we are maintaining our full-year 2013 estimates."

(We note the company remains well positioned to benefit from improving carbon steel utilization rates and with its debt-to-capital ratio at a lean 24%, we can't rule additional acquisitions or share repurchases)

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 $11.37 yesterday.

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