UPDATE: Jefferies Upgrades GrafTech International Ltd. to Buy, Raises PT as Supply-Side Correction is Underway

In a report published Monday, Jefferies analyst Luke Folta upgraded the rating on

from Hold to Buy, and raised the price target from $7.00 to $12.00. In the report, Jefferies noted, “In recent weeks, electrode industry leaders (GTI/SGL) have announced significant capacity reductions (9% of global) with further actions likely. Combined with recovery of Western world demand in the coming years, our view on pricing prospects for graphite electrodes has improved, which along with significant cost reductions should drive material earnings improvement & valuation upside for GTI.” GrafTech International Ltd. closed on Friday at $9.51.