UPDATE: Oppenheimer Initiates Horsehead Holding at Outperform Ahead of New Plant Opening

In a report published Friday, Oppenheimer analyst Ian Zaffino initiated coverage on Horsehead Holding ZINC with an Outperform rating and $17.00 price target.

In the report, Oppenheimer noted, “With a new plant expected to open in 3Q13—potentially pushing EBITDA ~3x higher by 2015, primarily on cost savings alone—we believe ZINC is an interesting, underappreciated investment opportunity. It is an industry leader and low-cost producer in a sector with substantial barriers to entry and positive secular trends. The shares offer a 12%+ FCF yield on 2015E . We initiate coverage of Horsehead Holding Corp. (ZINC) with an Outperform rating and 12- to 18-month $17 price target.”

Horsehead Holding closed on Thursday at $12.33.