The hottest keybanc raised Ashland's rating to buy

2022-09-19
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Keybanc raised Ashland's rating to buy

on the evening of August 24, Beijing time, a Wall Street analyst announced that Ashland Inc It is possible to gain greater benefits from the profitability growth of Valvoline motor lubricant department, faster cost cutting and the profit growth of hercul es business department since last year. It is decided to upgrade the stock rating of this chemical manufacturer

Michael J. Sison, an analyst at keybanc, announced that he would raise the stock rating of Ashland, headquartered in Covington, Kentucky, from "hold" to "buy" and set the target share price at $53 within 12 months

in a research report to customers, Sison pointed out that the reason for his rating increase was "confidence that Valvoline can maintain the growth of profitability, cost cutting measures will be completed beyond the time limit, and Hercules Department has sufficient profit growth space". Ashland acquired Hercules for $2.4 billion last November. Hercules mainly manufactures professional additives such as paper making chemicals and coating thickeners

Sison also announced that it would raise its forecast for Ashland's 2010 earnings per share from $2.40 to $3.25. According to the survey of Thomson Reuters Group, the average expectation of market analysts is $3.06. The analyst also said that in terms of product strategy, the ne lubricant Department of valvoli will account for about half of its expected profit per share in 2010 due to the complexity of the intelligent control system of the pressure testing machine

Sison predicts that the operating profit of Ashland aqualon department in fiscal year 2010 will increase by 15% compared with that in fiscal year 2009, and the growth momentum is mainly cost cutting and the introduction of new products. Aqualon mainly produces water-based treatment systems. Sisen also pointed out that he believed that Ashland's water technology sector was now "well grounded" and that "we believe that Ashland now has the right platform to compete in the water treatment market"

the analyst also said that the risk factors that may prevent Ashland's share price from reaching the target price include: the increase in the cost of natural gas and crude oil, the decline in the market related to industrial production and the continued downturn in the global economy

as of 11:17 a.m. Eastern time on Monday (23:17 p.m. Beijing time on Monday), Ashland's shares listed on the New York Stock Exchange rose $1.29, or 3.54%, to $37.68

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