Strong Q4 Seems Likely For Cabot Corp. (CBT)

Cabot Corporation (NYSE: CBT) has had a very strong year and is looking to finish the year out in the same fashion.

In a research report Jefferies & Company, Inc. writes "With more favorable fundamentals likely into 2011, limited balance sheet risk, a more favorable raw material environment, and ongoing structural improvements, we reiterate our Buy rating.

Given likely favorable volumes in Q4, we are raising 2010E EPS $0.05 to $2.85. To better reflect both the likely ongoing tantalum inventory liquidation ($0.06-$0.10/quarter tailwind while it lasts) and the CEC milestones ($0.02-$0.05 benefit in 2010), we are raising 2011E $0.10 to $2.95 and lowering 2012E $0.10 to $3.10."

CBT Closed Tuesday at $32.97

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