UPDATE: JP Morgan Downgrades GrafTech International to Neutral
JP Morgan downgraded GrafTech International (NYSE: GTI) from Overweight to Neutral and lowered the price target from $14.00 to $8.50.
JP Morgan commented, "We are cutting our Dec 13 target to $8.50 from $14, downgrading shares of GrafTech to Neutral from Overweight and reducing our expectations for GTI's unique vertical integration and leverage to a non-residential construction recovery, two tenets of our original OW thesis. GTI's annual graphite electrode and needle coke negotiations expose the company's earnings to binary risk, especially during periods of economic uncertainty like 4Q12. In our view, 2013 was especially weak in part from a decision by the market leader, Phillips 66 at ~60% share, to cut needle coke prices rather than capitalize on increasing demand from electrode producers."
GrafTech International closed at $7.92 on Tuesday.
Latest Ratings for GTI
|Oct 2013||JP Morgan||Downgrades||Neutral||Underweight|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.