NEW YORK (TheStreet) -- Shares of Horsehead Holding Corp. (ZINC) are down by -3.10% to $17.80 in pre-market trading on Tuesday following a ratings downgrade to "market perform" from "outperform" at FBR Capital (FBRC).
The firm said it downgraded the producer of zinc and nickel-based products based on its belief the company's investors "have largely priced in the potential earnings growth [of $90 million to $110 million in EBITDA], leaving limited upside."
FBR maintained its $21 price target on Horsehead Holding's stock.
Must Read: Warren Buffett's 25 Favorite Stocks
Separately, TheStreet Ratings team rates HORSEHEAD HOLDING CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HORSEHEAD HOLDING CORP (ZINC) 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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: