UPDATE: Topeka Capital Markets Downgrades Haynes International to Hold, Lowers PT as Unfavorable Nickel Contract is Expected to Compound Headwinds

In a report published Friday, Topeka Capital Markets analyst Daniel Whalen downgraded the rating on Haynes International HAYN from Buy to Hold, and lowered the price target from $61.00 to $51.00. In the report, Topeka Capital Markets noted, “HAYN reported fiscal 4Q13 EPS results of $0.32 in-line with the pre-announced range of $0.30-$0.32. While management had indicated along with the pre-announcement that fiscal 1Q was expected to experience a sequential decline, this commentary was refined to indicate it would likely be a net loss versus our estimate of $0.26, consensus of $0.26 and fiscal 4Q results of $0.32. F1Q14 results are expected to experience further pressure from the broader economic uncertainty, ongoing customer de-stocking and will likely be exacerbated by maintenance outages that are being pulled forward to take advantage of the current weak market conditions. While the broader industry is experiencing similar headwinds, HAYN has locked in higher nickel/raw material costs versus current market prices via a fixed contract through fiscal 2015. Consequently, we are lowering our estimates, our price target from $61 to $51 and our rating from Buy to Hold.” Haynes International closed on Thursday at $53.05.