Oppenheimer analyst Ian Zaffino maintained a Buy rating on Ferroglobe PLC (NASDAQ: GSM) yesterday and set a price target of $16. The company’s shares closed yesterday at $8.11, close to its 52-week low of $6.75.
Zaffino wrote:
“2Q18 results were slightly softer than our below-Street estimates. Adjusted EBITDA was $86.3M, vs. our/Street’s est. $89.2M/$93.1M. US SiM prices averaged $1.41/lb. in the quarter, vs $1.08/lb. in 2Q17 and $1.42/lb. in 1Q18. Meanwhile, FeSi prices averaged $1.07/lb. in the quarter, vs. $0.80/lb. in 2Q17 and $1.11/lb. in 1Q18. In a nod to shareholder value, management declared a $20M share buyback program through YE2018. 2Q18 price (FeSi/Manganese) and volume (SiM) pressures, we reduce FY2018E EBITDA to $350.6M, from $353.5M. Maintain Outperform.”
According to TipRanks.com, Zaffino is a 4-star analyst with an average return of 3.8% and a 55.4% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Wyndham Destinations Inc, and Peak Resorts.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Ferroglobe PLC with a $13.88 average price target, a 71.1% upside from current levels. In a report issued on August 16, Jefferies also maintained a Buy rating on the stock with a $10 price target.
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Based on Ferroglobe PLC’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $36.68 million. In comparison, last year the company had a net profit of $2.86 million.
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Ferroglobe PLC engages in the production of silicon metal, silicon-based specialty alloys, and ferroalloys. It operates through the following segments: Electrometallurgy-North America, Electrometallurgy-Europe, Electrometallurgy-South Africa, and Other. The company was founded on February 5, 2015 and is headquartered in London, the United Kingdom.
