BWS Financial Maintains a 'Buy' on TRONOX (TROX); Closing Deal with Exxaro Resources
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Price: $5.56 -0.89%
Rating Summary:
7 Buy, 5 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 5 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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BWS Financial maintains a 'Buy' on TRONOX (OTC: TROX) price target raised to $287.50
Analyst, Hamed Khorsand, said, "Tronox is in the final stages of closing the transaction with Exxaro Resources and, in doing so, released first quarter results without holding an earnings call. The first quarter revenue came in at $433.6 million, ahead of our forecast. The volume pickup from the fourth quarter, and pricing, was untarnished from the reduced order rates the titanium dioxide (“TiO2”) industry experienced in the prior quarter. Gross margin and EBITDA were within range. We had been carrying a conservative approach towards the results because of the exposure TROX has to the Asian markets. The Company saw an increase in demand from other regions pickup the slack. With the Exxaro assets TROX would have improved means to rutile resulting in positive contribution to profit margins."
"For 2012 we are forecasting revenue of $2.4 billion with EBITDA of $820 million and EPS of $24.40...Revenue in 2013 could increase to $3.0 billion with EBITDA of $1.0 billion and EPS of $25.99."
For an analyst ratings summary and ratings history on TRONOX click here. For more ratings news on TRONOX click here.
Shares of TRONOX closed at $158.50 yesterday.
Analyst, Hamed Khorsand, said, "Tronox is in the final stages of closing the transaction with Exxaro Resources and, in doing so, released first quarter results without holding an earnings call. The first quarter revenue came in at $433.6 million, ahead of our forecast. The volume pickup from the fourth quarter, and pricing, was untarnished from the reduced order rates the titanium dioxide (“TiO2”) industry experienced in the prior quarter. Gross margin and EBITDA were within range. We had been carrying a conservative approach towards the results because of the exposure TROX has to the Asian markets. The Company saw an increase in demand from other regions pickup the slack. With the Exxaro assets TROX would have improved means to rutile resulting in positive contribution to profit margins."
"For 2012 we are forecasting revenue of $2.4 billion with EBITDA of $820 million and EPS of $24.40...Revenue in 2013 could increase to $3.0 billion with EBITDA of $1.0 billion and EPS of $25.99."
For an analyst ratings summary and ratings history on TRONOX click here. For more ratings news on TRONOX click here.
Shares of TRONOX closed at $158.50 yesterday.
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