UPDATE: Deutsche Bank Upgrades Ferro Following Upside Earnings Beat
In a report published Friday, Deutsche Bank analyst David Begleiter upgraded Ferro (NYSE: FOE) from Hold to Buy, and reiterated the $8.00 price target.
In the report, Deutsche Bank noted, “Ferro shares rose 3% as the company posted its 2nd consecutive upside earnings surprise. Ferro's cost saving initiatives and value creation strategy are gaining traction and driving sharply improved results despite a challenging macro backdrop. While earnings will be down sequentially in 2H13, this is entirely due to normal seasonal factors. With Ferro's cost initiatives on track to generate $0.22 of savings in '13 and an additional $0.30 of savings in '14, Ferro reaffirming its '13 EPS guidance of $0.35-$0.40 (vs $0.01 a year ago) and valuation an attractive 11.2x '14E EPS, we are upgrading Ferro to Buy from Hold with a price target of $8, upside of 19%.”
Ferro closed on Thursday at $6.73.
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