Cliffs Natural Resources Inc (NYSE: CLF) had its "Buy" rating maintained on it by Dahlman Rose even though they lowered their earnings estimates on the company.
Dahlman Rose wrote in a note to clients, "Despite our lower earnings estimates we continue to see compelling value in the shares. We believe the company's move to gain further diversification into the seaborne iron ore market may warrant the shares trading at a higher multiple over time. In fact, given the more balanced revenue generating capability that the company now has with more exposure to emerging markets, we believe that we are being extremely conservative in applying a 5.0x EV/EBITDA multiple to our 2012 EBITDA estimate of $4.1 billion to derive our price target of $120, as the shares have historically traded at 7x forward EBITDA. We reiterate our Buy rating on Cliffs Natural Resources shares."
Cliffs was trading at $88.85, gaining $0.94, or 1.07 percent, as of 2:15 PM EDT.
Showing posts with label Dahlman Rose. Show all posts
Showing posts with label Dahlman Rose. Show all posts
Thursday, June 2, 2011
Wednesday, October 6, 2010
Alcoa (NYSE:AA) Earnings Lowered by Dahlman Rose
Alcoa (NYSE:AA) had its earnings estimates lowered by Dahlman Rose for the third quarter of 2010, citing aluminum prices being lower than they were projected to be.
That has been one of the problems with Alcoa's past projections, which have been for aluminum price increases of about 10 percent, although that could be the case going forward.
Consequently, Dahlman lowered earnings per share estimate for Alcoa from $0.10 a share to $0.05 a share.
Price per pound for aluminum in the third quarter was expected to be at $0.95 a pound, but came in at $0.93 a pound instead.
Full year estimates for 2010 and 2011 remain on track according to Dahlman, with earnings in 2010 expected to be $2.8 billion, or $0.45 a share, while earnings in 2011 for the full year are estimated to be $4 billion, or $1.10 a share.
That has been one of the problems with Alcoa's past projections, which have been for aluminum price increases of about 10 percent, although that could be the case going forward.
Consequently, Dahlman lowered earnings per share estimate for Alcoa from $0.10 a share to $0.05 a share.
Price per pound for aluminum in the third quarter was expected to be at $0.95 a pound, but came in at $0.93 a pound instead.
Full year estimates for 2010 and 2011 remain on track according to Dahlman, with earnings in 2010 expected to be $2.8 billion, or $0.45 a share, while earnings in 2011 for the full year are estimated to be $4 billion, or $1.10 a share.
Friday, September 24, 2010
CF Industries (NYSE:CF) Gets Mixed Coverage
CF Industries (NYSE:CF) has received a lot of coverage from companies lately, with two looking positive at the fertilizer company, and one looking negative, with most investors seeming to believe the negative report rather than the two positive ones.
The damage was done by Dahlman Rose, which downgraded CF in the middle of Thursday's trading session, dropping their rating from "Buy" to "Hold." The stock plunged afterwards.
Soleil on the other hand upgraded CF from "Hold" to "Buy," while raising their price target from $105 to $116.
They said CF "embeds a paired trade: long corn and short natural gas."
Earnings per share for full year 2011 was raised from $8.10 to $9.44 by Soleil.
Susquehanna initiated coverage on CF with a "Positive," citing the strength of their nitrogen business.
The company said they consider CF the "purest" nitrogen play in the North American market.
With nitrogen profits expected to explode by Susquehanna, they believe nitrogen EBITDA could could grow as much as 77 percent in 2010, with 2011 adding another 28 percent.
"CF provides the best leverage to surging corn prices, and our
expectations for a 4 million increase in 2011 corn acreage," said Susquehanna.
They have a price target of $129 on CF.
CF closed at $98.68 Thursday, plummeting $2.75, or 2.71 percent.
The damage was done by Dahlman Rose, which downgraded CF in the middle of Thursday's trading session, dropping their rating from "Buy" to "Hold." The stock plunged afterwards.
Soleil on the other hand upgraded CF from "Hold" to "Buy," while raising their price target from $105 to $116.
They said CF "embeds a paired trade: long corn and short natural gas."
Earnings per share for full year 2011 was raised from $8.10 to $9.44 by Soleil.
Susquehanna initiated coverage on CF with a "Positive," citing the strength of their nitrogen business.
The company said they consider CF the "purest" nitrogen play in the North American market.
With nitrogen profits expected to explode by Susquehanna, they believe nitrogen EBITDA could could grow as much as 77 percent in 2010, with 2011 adding another 28 percent.
"CF provides the best leverage to surging corn prices, and our
expectations for a 4 million increase in 2011 corn acreage," said Susquehanna.
They have a price target of $129 on CF.
CF closed at $98.68 Thursday, plummeting $2.75, or 2.71 percent.
Wednesday, June 2, 2010
Alpha Natural Resources (NYSE:ANR) Upgraded by Dahlman Rose
Alpha Natural Resources (NYSE:ANR) was upgraded by Dahlman Rose today from "Hold" to Buy," along with competitor Arch Coal, Inc. (NYSE:ACI).
Yesterday FBR Capital Markets maintained its outperform rating on Arch as well.
Although some say it's from a potential rebound in coal demand, which is probably part of it, the companies above are also noted for strong safety records and safety measures, which gives them a much higher degree of predictability than others in the industry, or at least that's how they're increasingly being perceived by investors.
Adding the two elements together gives them a strong competitive advantage if they can continue on as they are, along with producing a lot of coal to meet the growing demand, assuming that the coal demand is sustainable.
Yesterday FBR Capital Markets maintained its outperform rating on Arch as well.
Although some say it's from a potential rebound in coal demand, which is probably part of it, the companies above are also noted for strong safety records and safety measures, which gives them a much higher degree of predictability than others in the industry, or at least that's how they're increasingly being perceived by investors.
Adding the two elements together gives them a strong competitive advantage if they can continue on as they are, along with producing a lot of coal to meet the growing demand, assuming that the coal demand is sustainable.
Friday, April 16, 2010
Rio Tinto (NYSE:RTP) Upgraded by Dahlman Rose
Rio Tinto Upgraded by Dahlman Rose
Dahlman Rose announced they had upgraded Rio Tinto (NYSE:RTP), raising their target price from $300 to $340.
While production at the company are in line with estimates, the increased pricing power based on changing to quarterly contracts is the major impetus behind the upgrade.
Dahlman said the increase in iron ore prices will directly affect the earnings at Rio Tinto in 2010 and into the future.
Dahlman Rose announced they had upgraded Rio Tinto (NYSE:RTP), raising their target price from $300 to $340.
While production at the company are in line with estimates, the increased pricing power based on changing to quarterly contracts is the major impetus behind the upgrade.
Dahlman said the increase in iron ore prices will directly affect the earnings at Rio Tinto in 2010 and into the future.
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