UPDATE: Topeka Capital Markets Initiates W.R. Grace & Co. with Hold on Fair Valuation
In a report published Friday, Topeka Capital Markets analyst Chris Kapsch initiated coverage on W.R. Grace & Co. (NYSE: GRA) with a Hold rating and $74.00 price target.
In the report, Kapsch noted, “W.R. Grace & Co. is a premier global specialty chemicals company, with leading franchises in Catalysts, Silica Gels, Packaging Sealants and Construction Chemicals. Operating under bankruptcy protection for over 12 years, GRA now appears finally set to emerge late in 2013 or early 2014. Emergence will be a major positive step for the Company, and potentially the stock. But while the uniqueness of such a special situation may normally create idiosyncratic views/information, GRA is hardly obscure or undiscovered. To the contrary, we believe the stock is currently fairly if not fully valued, on estimates that may prove too optimistic. We do believe the impending emergence is a fait accompli, with minimal risks associated with that process. But we also believe there is earnings expectation risk, which may be currently overlooked by investors.”
W.R. Grace & Co. closed on Thursday at $78.86.
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