UBS Reiterates Buy on Ashland (ASH) Following Mixed 1Q Results

UBS maintained a Buy rating on Ashland Inc. (NYSE: ASH), and cut the price target to $125.00 (from $138.00), following the company's 1Q earnings report. Results for New ASH were mixed with ASI segment sales down 15% with gains in pharma and hair care but declines in personal care. Adjusted EPS of $1.41 beat consensus estimates of $1.39. Industrial Specialty sales were down 23% largely from weaker N. American energy markets, FX, and divestitures.

Analyst John Roberts commented, "ASH remains on track for Valvoline separation despite recent activist call to reconsider. Valvoline reports strong volume and margin growth while "New" ASH saw FX pressure and ongoing pressure in industrial specialties within ASI, particularly in emerging regions and construction & adhesive end markets. The outlook for F2Q (implying EPS of ~$1.71) is below our initial expectation of $1.90."

For an analyst ratings summary and ratings history on Ashland Inc. click here. For more ratings news on Ashland Inc. click here.

Shares of Ashland Inc. closed at $95.68 yesterday.

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