Jefferies Reiterates Buy Rating on Nalco Holding (NLC)

Jefferies & Co. is out with an investor note this morning that is reiterating their Buy rating on shares of Nalco Holding (NYSE: NLC). They have a price target of $30.00.Jefferies analysts said that “Nalco recently released details defending the safety of its dispersant, COREXIT 9500, which has been used to break up the Gulf of Mexico oil spill. According to Nalco, the dispersant is a blend of six well-established, safe ingredients that biodegrade, do not bioaccumulate and are commonly found in popular household products.”They said that toxicity is a matter of the dosage, which environmentalists may argue that ingredients used safely in small amounts in food items and household products may not necessarily be safe on a larger scale.Jefferies said “If Nalco's dispersant were re-approved for use in the Gulf of Mexico, we believe it would represent an estimated $0.10-$0.20 to EPS. So far, Nalco has confirmed ~$40m in dispersant sales for the U.S. Gulf oil spill, an estimated $0.07-$0.08 to EPS.”