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Organic Growth For PolyOne Remains Elusive, Says Goldman

Organic Growth For PolyOne Remains Elusive, Says Goldman

Goldman Sachs has downgraded PolyOne Corporation (NYSE: POL) to Neutral from Buy, saying that the "organic growth remains elusive" for the provider of polymer materials, services and solutions.

The downgrade comes despite the company's second-quarter EPS of $0.63 topped consensus estimate of $0.61, and management still expects double-digit EPS gains for the year.

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"[W]e believe 2H16 growth comparisons are likely to decelerate, as organic growth for its key Color and Engineered Materials business remains elusive and macroeconomic trends lackluster. Absent improvement in top-line growth metrics and an upward earnings revision bias, our above-consensus estimates and enthusiasm for the shares appear too ambitious," analyst Robert Koort wrote in a note.

Reflecting a more subdued growth expectation, Koort cut his EPS estimates for 2016/17/18 by 3 percent each to $2.16/$2.40/$2.67 and lowered his price target by $4 to $38.

"We believe POL possesses a well-focused strategy capable of attractive growth but believe greater validation is required," Koort added.

At time of writing, shares of PolyOne had fallen 4.22 percent on the day to $35.16.

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Latest Ratings for POL

Apr 2019MaintainsBuyBuy
Apr 2019MaintainsOverweightOverweight
Feb 2019Initiates Coverage OnBuy

View More Analyst Ratings for POL
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