Bank of America Corp. upgraded shares of Rockwood Holdings (NYSE:ROC) from a neutral rating to a buy rating in a research report sent to investors on Friday morning, ARN reports. The firm currently has $86.00 price target on the stock, up from their previous price target of $75.00.
“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.,” the firm’s analyst wrote.
A number of other analysts have also recently weighed in 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 investment analyst has rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company’s stock. Rockwood Holdings presently has a consensus rating of Hold and a consensus target price of $76.41.
Rockwood Holdings (NYSE:ROC) opened at 73.30 on Friday. Rockwood Holdings has a one year low of $46.77 and a one year high of $74.67. The stock’s 50-day moving average is $67.31 and its 200-day moving average is $66.2. The company has a market cap of $5.364 billion and a P/E ratio of 4.86.
Rockwood Holdings (NYSE:ROC) last posted its quarterly earnings results on Tuesday, November 12th. The company reported $0.63 earnings per share (EPS) for the quarter, beating the 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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