Ferroglobe PLC Receives a Buy from Oppenheimer

By Jason Carr

Oppenheimer analyst Ian Zaffino reiterated a Buy rating on Ferroglobe PLC (NASDAQ: GSM) yesterday and set a price target of $14. The company’s shares closed yesterday at $10.30.

Zaffino noted:

“Management emphasized its position as one of the most diversified producers globally—both geographically (49% of rev. from Europe, 38% NA and 13% ROW) and by product (~50% of rev. from SiM, ~22% Si-alloy, ~14% manganese alloys and ~14% other). Prices of SiM have just started to rise, while alloys continue to enjoy higher prices. Separately, the Hydro asset sale could extend into 3Q17, as GSM addresses local political opposition. Finally, Chairman Javier Madrid Lopez continues to work to clear his name of any wrongdoing and believes he will be exonerated; but, he acknowledged the process in Spain could drag on for several years.”

According to TipRanks.com, Zaffino is a 4-star analyst with an average return of 4.4% and a 59.4% success rate. Zaffino covers the Services sector, focusing on stocks such as Macquarie Infrastructure Company, Bristow Group Inc, and Houghton Mifflin.

Currently, the analyst consensus on Ferroglobe PLC is Strong Buy and the average price target is $13.50, representing a 31.1% upside.

In a report issued on May 11, Jefferies also reiterated a Buy rating on the stock with a $13 price target.

The company has a one year high of $12.53 and a one year low of $7.67. Currently, Ferroglobe PLC has an average volume of 787.4K.

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Ferroglobe PLC provides silicon and specialty metals. It produces silicon metal and silicon and manganese based alloy, serving key customers in the specialty chemical, aluminum, solar, steel and ductile iron foundry industries. The company was founded on February 5, 2015 and is headquartered in London, the United Kingdom.