Will This Price Target Reduction Hurt P.H. Glatfelter (GLT) Stock Today?

NEW YORK (TheStreet) -- P.H. Glatfelter (GLT) shares had their "buy" rating reiterated by analysts at Deutsche Bank (DB).

However, the firm also lowered the company's price target to $31 from $35.

"(We) reduced our PT for Glatfelter from $35 to $31/share due to tempered expectations for uncoated freesheet price increases as well as exposure to Russia/Ukraine end-markets," said the Deutsche Bank analyst.

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Separately, TheStreet Ratings team rates GLATFELTER as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GLATFELTER (GLT) 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, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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

  • GLT's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues rose by 10.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the 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.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • GLATFELTER reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GLATFELTER increased its bottom line by earning $1.52 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($1.94 versus $1.52).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Paper & Forest Products industry. The net income increased by 136.4% when compared to the same quarter one year prior, rising from $6.97 million to $16.48 million.
  • You can view the full analysis from the report here: GLT Ratings Report
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