J.P. Morgan Adjusts Estimate on Ashland Due To Water Business (ASH)

J.P. Morgan is out with its research report today on Ashland Inc. (NYSE: ASH) following consistent 1Q:F11 results across the board except for their water business.

In a note to clients, J.P. Morgan writes, "We reduced our Water profit expectation for 1Q:F11 by ($6M) to $17M. We lowered our full year F2011 (ends September 2011) operating
income projection for the segment by ($12M) to $98M to account for slower than expected implementation of the price increases. Our profit forecast for the rest of the
businesses remains unchanged. We reduced our 1Q:F11 EPS forecast from $0.74 to $0.69. We lowered our F2011 EPS projection from $3.80 to $3.70 and our F2012 EPS estimate from $4.55 to $4.50."

J.P. Morgan maintains its Overweight rating and $65.00 price target.

ASH closed Tuesday at $51.01.