UPDATE: Goldman Sachs Downgrades GrafTech International to Sell on Structural Oversupply Issues
Goldman Sachs downgraded GrafTech International (NYSE: GTI) from Neutral to Sell and lowered the price target from $9.00 to $5.50.
Goldman Sachs said, "We expect oversupply in the electrode market to worsen in the foreseeable future as new capacity continues to be built, both in China and ex-China. Despite GS estimates of 4% global steel production growth in 2013, electrode and needle coke prices have declined in 2013 as electrode capacity additions exceeds steel growth. Hence we see reduced pricing power and expect GTI to achieve margins below its historical average and we lower our 2013/2014/normalized EPS estimates to $0.35/$0.65/$1.00 from $0.70/$1.00/$1.30."
GrafTech International closed at $7.92 on Tuesday.
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