Auriga Maintains a 'Buy' on Globe Specialty Metals (GSM); Lowering Q2, But Demand Improving as Plant Resumes Production

Auriga maintains a 'Buy' on Globe Specialty Metals (NASDAQ: GSM) price target of $17.00.

Auriga analyst said, "On Friday, GSM management indicated EBITDA for fiscal 2Q12 is expected to decline sequentially by about $12 million (m) from $41.2m. Approximately 83% of this decline we view as largely non-recurring, with the remaining $2m attributed to lower shipments and pricing in the quarter. The guidance is essentially in-line with our recently reduced estimates, which largely excluded many of the more non-recurring items. However, we are revising our fiscal 2Q12 EPS estimate to $0.17 from $0.25 to be more consistent on a reportable basis."

For an analyst ratings summary and ratings history on Globe Specialty Metals click here. For more ratings news on Globe Specialty Metals click here.

Shares of Globe Specialty Metals closed at $13.83 yesterday.

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