B.Riley FBR analyst Liam Burke reiterated a Buy rating on Koppers Holdings Inc (KOP) today and set a price target of $40. The company’s shares opened today at $21.13, close to its 52-week low of $19.91.
“KOP shares saw a steep decline in the face of disappointing 3Q18 results. With the stock is now trading at a PE ratio of about 6.5x our 2018 EPS and looking at an improved outlook for 2019, we believe Koppers Holdings (KOP) shares remain undervalued. We have reduced our price target from $60 to $40 but are maintaining our Buy recommendation based on its current valuation and a solid performance improvement in 2019. Koppers transitioned from a company primarily concentrating on producing carbon pitch for aluminum production to a company generating a larger percentage of revenue from higher-margin wood preservation products and the business is becoming simpler with a lower percentage of product profit margins tied to the price of oil.”
According to TipRanks.com, Burke is a 1-star analyst with an average return of -0.9% and a 49.6% success rate. Burke covers the Industrial Goods sector, focusing on stocks such as Standex International Corp, International Seaways Inc, and Carlisle Companies Inc.
Koppers Holdings Inc has an analyst consensus of Strong Buy, with a price target consensus of $45, implying an 113.0% upside from current levels. In a report issued on October 26, Barrington also maintained a Buy rating on the stock with a $61 price target.
Koppers Holdings Inc’s market cap is currently $458.7M and has a P/E ratio of 21.09. The company has a Price to Book ratio of 5.07.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KOP in relation to earlier this year.
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Koppers Holdings, Inc. operates as a holding company, which produces treated wood products, wood treatment chemicals and carbon compounds. It operates through the following segments: Carbon Materials & Chemicals; Railroad and Utility Products & Services; and Performance Chemicals.