Oppenheimer Reiterates Outperform On Horsehead Holding; Sees 74% Upside For The Stock

In a research report issued yesterday, Oppenheimer analyst Ian Zaffino reiterated an Outperform rating on Horsehead Holding (NASDAQ:ZINC) with a $23 price target, which represents a potential upside of 74% from where the stock is currently trading.

Zaffino wrote, “The stock remains under pressure, owing to broad weakness in commodities. The LME zinc price is now ~$1.02/lb, vs. $1.08 on Sept. 4th. Despite these recent LME declines, US premiums have increased, which could offset the impact. Further, ZINC is hedged at $1.07 for 3Q14. The Rutherford facility took downtime in July, and we adjust our estimates to reflect this. Our 2014E EPS/EBITDA is reduced to -$0.07/ $46M (from -$0.02/$50M).”

The analyst added, “Overall, our thesis remains intact. Despite the plant downtime and weakness in commodities, we believe the company is well positioned for EBITDA growth given the longer term trend of higher zinc prices and the potential for international expansion.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ian Zaffino has a total average return of 8.3% and a 53.7% success rate. Zaffino has an 8.7% average return when recommending ZINC, and is ranked #735 out of 3295 analysts.

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