Analyst Cuts Rating On Globe Specialty Metals

NEW YORK (AP) â¿¿ Shares of Globe Specialty Metals fell more than 6 percent on Monday after an analyst downgraded the silicon alloy maker, saying its stock price has risen to fair value.

THE SPARK: Ian Corydon of B. Riley & Co. lowered Globe Specialty Metals to "Neutral" from "Buy."

THE ANALYSIS: Corydon says that Globe Specialty Metals Inc. is currently trading slightly above his $16.75 price target. The shares closed at $17.04 on Friday.

"While Globe Specialty Metals has a lot going for it, silicon metal prices remain lackluster and negotiations for 2013 supply contracts will begin in earnest in the October through December timeframe," he wrote in a client note.

SHARE ACTION: Globe Specialty Metals' stock dropped $1.15, or 6.8 percent, to $15.89 in afternoon trading. The shares have traded between $11.41 and $18.40 over the past year and are up 23 percent for the year to date.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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