Rockwood Holdings Upgraded to “Buy” by Bank of America Corp. (ROC)
Rockwood Holdings (NYSE:ROC) was upgraded by equities research analysts at Bank of America Corp. from a “neutral” rating to a “buy” rating in a research note issued to investors on Friday, Stock Ratings News reports. The firm currently has a $86.00 price target on the stock. Bank of America Corp.’s target price suggests a potential upside of 22.47% from the stock’s previous close.
The analysts wrote, “We think that the company’s lithium business (57% of PF EBITDA) is in the early stages of a multi-year earnings upcycle. Rockwood’s acquisition of a 49% stake in Talison announced on December 2 raises our conviction that lithium business will see healthy volume and price growth over the next 3+ years. The acquisition combines Rockwood’s 32% share in lithium with Talison’s upstream lithium ore that is used in another 17% of lithium production, creating a global leader. We believe that lithium market has been tightening in 2013 as most major producers operated at capacity, while demand grew. Rockwood appears well-positioned to take advantage of that tightness given its low cost position on the curve and improved industry structure. We raise our PO to $86, representing 13.2x average EBITDA for 2014-15 or 20.7x our 2015 EPS estimate of $3.15 as adjusted for excess cash and pending buyback.”
A number of other firms have also recently commented on ROC. Analysts at Monness Crespi & Hardt upgraded shares of Rockwood Holdings from a “neutral” rating to a “buy” rating in a research note to investors on Wednesday, November 13th. They now have a $80.00 price target on the stock, up previously from $67.00. Separately, analysts at Merrill Lynch downgraded shares of Rockwood Holdings from a “buy” rating to a “neutral” rating in a research note to investors on Tuesday, September 24th. Finally, analysts at Goldman Sachs Group Inc. downgraded shares of Rockwood Holdings from a “buy” rating to a “neutral” rating in a research note to investors on Thursday, September 19th. They now have a $78.00 price target on the stock, down previously from $80.00. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and four have given a buy rating to the stock. Rockwood Holdings presently has an average rating of “Hold” and a consensus target price of $76.41.
Rockwood Holdings (NYSE:ROC) opened at 70.22 on Friday. Rockwood Holdings has a 52-week low of $46.77 and a 52-week high of $73.13. The stock’s 50-day moving average is $67.10 and its 200-day moving average is $66.18. The company has a market cap of $5.138 billion and a price-to-earnings ratio of 4.66.
Rockwood Holdings (NYSE:ROC) last issued its quarterly earnings data on Tuesday, November 12th. The company reported $0.63 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.50 by $0.13. The company had revenue of $890.10 million for the quarter, compared to the consensus estimate of $758.23 million. During the same quarter last year, the company posted $0.94 earnings per share. Rockwood Holdings’s revenue was up 3.2% compared to the same quarter last year. Analysts expect that Rockwood Holdings will post $2.09 EPS for the current fiscal year.
Rockwood Holdings, Inc (NYSE:ROC) is a developer, manufacturer and marketer of specialty chemicals and advanced materials used for industrial and commercial purposes.
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