UPDATE: Goldman Sachs Downgrades Carpenter Technology Corporation on Limited Upside Potential
In a report published Wednesday, Goldman Sachs analyst Sal Tharani downgraded the rating on Carpenter Technology Corporation (NYSE: CRS) from Buy to Neutral, but reiterated the $57.00 price target.
In the report, Goldman Sachs noted, “We downgrade CRS to Neutral from Buy as the stock has surpassed our price target and we see limited upside potential from current levels as continued inventory destocking could pressure the stock near term. We lower our 2QFY14 EPS estimate to $0.56 from $0.75 due to continued weaker mix. We also lower our FY2014/FY2015 estimates an average of 13% on continued inventory destocking and slower margin expansion. We maintain our $57, 6-month P/E- and EV/EBITDA-based price target. Since adding CRS to the Buy List on December 17, 2012 the share are +20.7% versus the S&P 500 +24.7%.”
Carpenter Technology Corporation closed on Tuesday at $60.48.
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