Jefferies Comments on Cabot Corporation After Third Quarter

Jefferies has published a report on Cabot Corporation CBT. In the report, Jefferies wrote, "Excluding $0.09 from restructuring but including a $0.06 discrete tax benefit, Q3 EPS of $1.04 was $0.16 above consensus and $0.23 above our estimate. Volumes remained solid (returned to 2008 levels in Q2) and utilization high (Rubber Blacks >90%). Segment profits were $0.15 above our forecast. Cabot remains focused on achieving $4.50 adjusted EPS in FY14. Q3 review: EPS of $1.04 beat was $0.23 above our estimate. Strong operating results in Core ($0.10/share better than forecast), Performance ($0.05) and New Business ($0.01) more than offset softer Specialty Fluids results ($0.01). Below the operating line, a higher share count, other expense and minority interest partly offset tailwinds from lower taxes, interest expense and unallocated expense. Sales were up 17% on strong volumes." Jefferies rated Cabot a BUY with a price target of $56.00. Cabot Corporation closed Tuesday at $40.85.