General Steel Holdings
(GSI - Get Report)
shares jumped in May after the Chinese company reported a first-quarter loss of 11 cents a share on revenue of $453 million, which was better than the consensus for a loss of 14 cents a share and revenue of $416 million. General Steel will post second-quarter results on Aug. 6, and the average of two analyst estimates calls for a loss of 6 cents a share on revenue of $491.2 million. On May 14, General Steel said it acquired a majority stake in one of Shanxi Meijin Energy Group's businesses for $64.7 million in cash and stock.
$2.89 (July 30 close)
Average Price Target:
$19, based on two analyst price targets of $34 and $4 dating to May 28. The average target represents a 551% rally from where the stock currently trades.
Three research firms, or 60% of those covering the stock, rate General Steel a "buy." They include Rodman & Renshaw and Caris & Co., which have price targets of $4 and $34, respectively. Hudson Securities analyst Julie Chen has a "hold" rating on the stock, "due to lack of visibility into commodity pricing which has created gross margin volatility industry-wide."
-- Written by Robert Holmes in Boston.
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