Story updated at 9:50 a.m. to reflect market activity.
WR Grace fell -1.2% to $91.28 in morning trading.
The firm set a price target of $113 for the company. Goldman Sachs analysts said WR Grace lacks near-term catalysts.
Separately, TheStreet Ratings team rates GRACE (W R) & CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GRACE (W R) & CO (GRA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market, GRACE (W R) & CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- GRACE (W R) & CO's earnings per share declined by 16.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GRACE (W R) & CO increased its bottom line by earning $3.30 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($4.54 versus $3.30).
- 40.73% is the gross profit margin for GRACE (W R) & CO which we consider to be strong. Regardless of GRA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.72% trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: GRA Ratings Report