Deutsche Bank Downgrades Metaldyne Performance Group (MPG) to Hold

Deutsche Bank downgraded Metaldyne Performance Group (NYSE: MPG) from Buy to Hold with a price target of $22.00. The change is tied to valuation.

Analyst Rod Lache said, "MPG reported Q3’15 EPS of $0.41; slightly below our $0.43 est. but in line with cons. Adj. EBITDA was $128.8MM; slightly below our $134.1MM cons. of $132.4MM, and roughly flat with 3Q14 of $130 MM as price, SG&A, FX, and scrap metal profits offset positives from volume growth. Implied Q4’15 EBITDA guidance is in the $105-$145MM range, and the $125 MM mid-point compares with cons. of $132.6 MM (as of 11/2/15). The variance vs. DBe and cons. appears to be largely related to lower scrap metal revenue and declines in Commercial/Industrial revenue. MPG now trades above our target and we are lowering it to Hold based on valuation and headwinds into 2016."

For an analyst ratings summary and ratings history on Metaldyne Performance Group click here. For more ratings news on Metaldyne Performance Group click here.

Shares of Metaldyne Performance Group closed at $23.30 yesterday.

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