UPDATE: Jefferies Initiates Luxfer Holdings at Buy; Exceptional Value in Specialty Materials

Jefferies initiated coverage on Luxfer Holdings

with a Buy rating and a $18.75 price target. Jefferies noted, "LXFR is well-positioned and a top performer among its valuation peer group and within our broader metals coverage. With a high level of market diversification, defensible competitive positions and dominant market shares for key specialty/niche products within its magnesium metal, zirconium chemical, gas cylinder and metal forming businesses, LXFR's business outperforms its valuation peers with meaningfully higher returns and margins, greater earnings growth, lower earnings volatility, strong cash flow generation and far lower debt. LXFR possesses strong growth potential with numerous identifiable opportunities to further grow earnings and expand the margin profile in each of its key businesses." Luxfer Holdings closed at $10.70 on Friday.