UPDATE: J.P. Morgan Downgrades Carpenter Technology Corporation to Neutral, Lowers PT on Slowing Growth

In a report published Friday, J.P. Morgan analyst Michael F. Gambardella downgraded the rating on Carpenter Technology Corporation

from Overweight to Neutral, and lowered the price target from $65.00 to $55.00. In the report, Gambardella noted, “We are downgrading CRS to Neutral from Overweight given a less attractive growth outlook and reduced upside for the stock. We are lowering our price target to $55 from $65 to reflect a cut to our estimates from a reduction in the near-term demand outlook. While we continue to believe that CRS's meaningful exposure to the aerospace and energy markets will drive growth over the next several years, we think the company's stock will likely be range-bound given our forecast for earnings to be flat-to-down over the next several quarters. We would also note that valuation is not compelling relative to others in our coverage universe, with the stock trading at 7.5x our 2014E EBITDA compared to its 8.2x historical average.” Carpenter Technology Corporation closed on Thursday at $45.81.