NEW YORK (TheStreet) -- Graftech International  (GTI) fell 8.48% to $11.87, down $1.10 from its previous close of $12.97, at the close of the trading day on Friday after Jefferies downgraded the stock to Hold from Buy.

The stock had a volume of 2,562,945, nearly twice its average of 1,346,920. It hit a high of $12.43 and a low of $11.83 for the day.

Jefferies also lowered its target price on the stock to $13 and cited expectations for lower needle coke prices in 2014 as one of the main reasons for the downgrade.

"Following the [approximately] 36% rise in valuations since our upgrade and incorporating a weaker pricing trajectory for GE and needle coke in 2014, we lower our rating to Hold (from Buy)," the report reads. "We continue to see LT upside given industry restructuring and gradual demand improvement, though expect 2014 will be another challenging year for mkt. trends and now see risk-reward more balanced at GTI's improved valuation."

TheStreet Ratings team rates GRAFTECH INTERNATIONAL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate GRAFTECH INTERNATIONAL LTD (GTI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $53.53 million or 18.76% when compared to the same quarter last year. Despite an increase in cash flow, GRAFTECH INTERNATIONAL LTD's average is still marginally south of the industry average growth rate of 19.36%.
  • GTI, with its decline in revenue, underperformed when compared the industry average of 9.6%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Electrical Equipment industry and the overall market, GRAFTECH INTERNATIONAL LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GRAFTECH INTERNATIONAL LTD is rather low; currently it is at 21.94%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.51% is significantly below that of the industry average.
  • You can view the full analysis from the report here: GTI Ratings Report