NEW YORK (TheStreet) -- Keybanc upgraded Ashland ASH to "buy" and set a $136 price target. The firm noted the company is cutting costs and the specialty ingredients business can drive growth.
The stock closed at $107.18 on Friday.
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- Net operating cash flow has increased to $189.00 million or 32.16% when compared to the same quarter last year. Despite an increase in cash flow, ASHLAND INC's average is still marginally south of the industry average growth rate of 35.32%.
- 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, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The debt-to-equity ratio is somewhat low, currently at 0.73, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
- ASH, with its decline in revenue, underperformed when compared the industry average of 11.1%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: ASH Ratings Report