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Jefferies Says Buy Fushi Copperweld (NASDAQ: FSIN)


Jefferies & Co. has a Buy rating and a $14 price target on shares of Fushi Copperweld (NASDAQ: FSIN).

In a note to clients, Jefferies writes, "CEO and affiliates have offered $11.50/sh for 100% of FSIN with the intention of taking it private. The offer has seemingly created a ceiling for the stock. Whether the offer is accepted or not, we consider FSIN a unique investment opportunity."

Jefferies writes, "We will not handicap the odds of the offer being accepted by the board, nor whether the buyers will
increase/decrease the offer. If the offer is accepted, investors stand to gain from current levels. If not, the stock would lose its downside protection. But applying what we believe is a reasonable 4x, comp-based multiple to our 2012E EBITDA forecast supports a $14 valuation by YE11. Accordingly, we consider FSIN, at current levels, a unique investment opportunity."

Shares of FSIN are down 5 cents in pre-market trading to $9.72, a loss of 0.5%.

Posted-In: Jefferies & Co.Analyst Color Price Target Analyst Ratings


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