Elementis (LON:ELM) Receives "Buy" Rating from Jefferies Financial Group

Key Points

• Jefferies reaffirmed its “Buy” rating on Elementis and set a GBX 210 price target, implying approximately 17.6% upside from the stock’s GBX 178.60 price. Deutsche Bank also maintained a “Buy” rating with a GBX 200 target.
• Analyst sentiment is broadly positive: three analysts rate Elementis a Buy and one rates it Hold, resulting in a consensus “Moderate Buy” rating and an average target price of GBX 200.
• Elementis reported quarterly EPS of GBX 8.60, while profitability remained weak with a negative 6.85% return on equity and a negative 7.58% net margin.

Elementis (LON:ELM - Get Free Report)'s stock had its "buy" rating reaffirmed by investment analysts at Jefferies Financial Group in a note issued to investors on Thursday,Digital Look reports. They currently have a GBX 210 price objective on the stock. Jefferies Financial Group's target price suggests a potential upside of 17.58% from the stock's current price.

Separately, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a GBX 200 target price on shares of Elementis in a research note on Wednesday, June 3rd. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of GBX 200.

Elementis Trading Up 3.5%

Shares of ELM opened at GBX 178.60 on Thursday. Elementis has a 1 year low of GBX 136 and a 1 year high of GBX 184. The company has a current ratio of 1.90, a quick ratio of 1.16 and a debt-to-equity ratio of 39.85. The stock has a 50 day simple moving average of GBX 156.77 and a 200-day simple moving average of GBX 157.45. The stock has a market cap of £1.02 billion, a PE ratio of -22.90, a PEG ratio of 3.05 and a beta of 0.92.

Elementis (LON:ELM - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported GBX 8.60 EPS for the quarter. Elementis had a negative return on equity of 6.85% and a negative net margin of 7.58%. On average, sell-side analysts predict that Elementis will post 9.4993582 EPS for the current fiscal year.

Elementis declared that its board has authorized a stock repurchase program on Wednesday, June 3rd that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

About Elementis

Elementis is a global specialty chemicals company listed on the London Stock Exchange. The Group employs c.1,000 across 20 global locations. As recognised innovation leaders with deep expertise in rheology (the science of flow), and formulation solutions, we develop distinctive solutions and products to improve performance, achieve smoother production, and enhance sustainability credentials for customers across a range of industries. The Group also owns and operates the largest high-quality hectorite mine in the world.

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